TSMC's US Advanced Chip Production Projected to Stay Under 15% by 2029, Expert Says
In a significant analysis of global semiconductor trends, an industry expert has projected that Taiwan Semiconductor Manufacturing Company (TSMC) will maintain less than 15 percent of its advanced chip manufacturing processes in the United States by the year 2029. This forecast sheds light on the ongoing shifts in the high-tech supply chain and the strategic positioning of one of the world's leading chipmakers.
Key Insights into TSMC's Global Manufacturing Strategy
The expert's assessment points to several critical factors influencing TSMC's production distribution:
- Geographic Concentration: Despite recent investments in US facilities, TSMC's core advanced processes—such as those below 7-nanometer technology—are expected to remain predominantly based in Taiwan and other Asian regions.
- Supply Chain Resilience: The limited US share reflects broader industry efforts to balance cost-efficiency with geopolitical risks, as companies navigate trade tensions and demand for localized production.
- Technological Leadership: TSMC continues to lead in cutting-edge semiconductor fabrication, with its US operations focusing more on mature nodes or serving specific market needs rather than housing the bulk of advanced capabilities.
Implications for the Semiconductor Industry and Global Economy
This projection carries important ramifications for various stakeholders:
- For the US: While the US government has pushed for domestic chipmaking through initiatives like the CHIPS Act, TSMC's forecast suggests that achieving self-sufficiency in advanced semiconductors may be a longer-term goal, with reliance on Asian supply chains persisting.
- For Global Markets: The distribution underscores the interconnected nature of the semiconductor industry, where expertise and infrastructure in regions like East Asia remain pivotal for high-end production.
- For Investors and Policymakers: Understanding these dynamics is crucial for strategic planning, as it highlights the need for diversified supply chains and continued innovation to address future demands.
Overall, the expert's analysis emphasizes that while TSMC is expanding its US footprint, the heart of its advanced manufacturing will likely stay concentrated elsewhere through the end of the decade, shaping global tech competitiveness and economic security.
