Taiwan Semiconductor Manufacturing Co. (TSM) CEO C.C. Wei has a message about the company's US expansion plans: there's no turning back now.
Speaking at an industry event in California on Thursday, Wei reaffirmed that Taiwan Semiconductor will forge ahead with expanding its Arizona fabrication plant, a cornerstone of the chipmaker's $165 billion US manufacturing investment. The move aligns perfectly with President Donald Trump's goal of bringing cutting-edge semiconductor production back to American soil.
"Once you start with a semiconductor fab, you cannot stop," Wei told Bloomberg at the event. It's a simple statement that captures the reality of semiconductor manufacturing: these facilities require continuous expansion and investment once they're up and running.
Why Semiconductor Fabs Keep Growing
Wei emphasized that semiconductor plants must continue expanding after they begin operations, driven by two powerful forces: strong customer demand and the US government's push for more domestic chip supply. The Arizona factory, which began operations this year, is being scaled up to achieve the size necessary to lower costs and effectively serve customers.
The CEO also pointed out that artificial intelligence remains in its early stages, with demand expected to keep accelerating. That's important context for understanding why TSMC is committing to such massive expansion plans.
Recognition for Industry Leadership
Wei's comments came after he and former Taiwan Semiconductor chairman Mark Liu (now a Micron Technology Inc. (MU) board member) received the 2025 Robert N. Noyce Award, one of the semiconductor industry's highest honors.
The recognition comes at a good time for the $1.4 trillion contract chipmaker. Its stock has gained 41% year-to-date, powered largely by its position as a key supplier to Nvidia Corp. (NVDA), currently the highest market cap company.
Government Support Fuels Global Expansion
Taiwan Semiconductor has secured nearly 147 billion New Taiwanese dollars (about $4.71 billion) in government subsidies over the past two years as global powers back its expansion in the US, Japan, Europe, and China. The company said its overseas units are using the funding to buy property, equipment, and facilities, and to cover operating costs at new fabs under agreements with local governments.
The chipmaker continues to scale advanced manufacturing capacity worldwide, including ramping production in Japan and expanding sites in Europe and China. It's a truly global buildout, though the Arizona facility remains central to the US strategy.
TSM Price Action: Taiwan Semiconductor shares were trading lower by 1.00% to $274.73 premarket at last check Friday.