TSMC's strategy to keep advanced manufacturing primarily in Taiwan might be shifting, as indicated by recent comments from CEO C.C. Wei. During the Q3 earnings call, Wei stated, "We are preparing to upgrade our technologies faster... to more advanced process technologies in Arizona, given the strong AI-related demand from our customers." Previously, TSMC has emphasized that its latest nodes would be developed in Taiwan first, with Arizona following. Currently, TSMC produces N4 4 nm technology at its Arizona facilities and had planned to introduce the N3 node in 2028. However, this plan might change in favor of developing more advanced N2 or even A16 nodes in the coming years, as Taiwanese facilities advance to the A16 and A14 nodes first. The U.S. fabs will remain one node generation behind the Taiwanese fabs, rather than several generations as initially planned.

The push to accelerate advanced node deployment is largely driven by demand from U.S. customers. TSMC recently confirmed that its most advanced N2 node will begin volume production by the end of the year, with a rapid increase planned through 2026 in Taiwan. This marks the second 2 nm-class node to reach high-volume manufacturing, following Intel's 18A node. The competition from Intel's 18A and the upcoming 14A ramp may have led TSMC to reconsider its strategy for bringing advanced manufacturing to its U.S. facilities. While TSMC plans to add five more facilities at its Fab 21 site, it is yet to be confirmed which nodes will be developed there. With an accelerated timeline, it seems only a matter of time before we see the first Angstrom-era nodes produced on American soil.

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