TSMC says it will manufacture 30% of most advanced chips in Arizona

• This is part of TSMC's efforts to diversify its semiconductor manufacturing footprint outside of the political volatility in Taiwan and supports the bipartisan U.S. national security push to increase domestic chips production and accelerate the AI economy.

The big picture: TSMC, the world's leading chips manufacturer, has committed $165 billion to its Arizona operation.

State of play: TSMC's first Phoenix semiconductor factory began production late last year and construction on the second fab is now complete, Wei said on the call.

• The company plans to begin construction on its third plant — the first in the U.S. that will utilize its most-advanced process technologies — later this year, the CEO added.
• TSMC will then build three additional semiconductor manufacturing plants, two advanced packaging facilities and a major research and development center in Arizona. The timeline for those projects has not yet been released.

The intrigue: Wei said TSMC is not discussing a joint venture or technology sharing agreement with any companies — an apparent dismissal of ongoing rumors of a deal with Intel, which also operates in Arizona.

What we're watching: Wei said U.S. tariffs have not yet impacted its customers' behaviors and the company remains bullish on its revenue forecast for 2025.