Taiwan Semiconductor Manufacturing Company (TSM) is going all-in on America. The world's leading chipmaker just hit a remarkable milestone: more than 75% of its revenue now comes from U.S. customers, up from 62% in 2018. That's not just growth, that's a fundamental transformation of where TSMC does business.

The shift makes sense when you look at who's buying advanced chips these days. American tech giants like Nvidia Corp. (NVDA) and Apple Inc. (AAPL) are driving unprecedented demand for cutting-edge semiconductors, particularly for AI applications. And TSMC is responding by bringing more of that production stateside.

Arizona Fabs Coming Online Faster Than Expected

According to a Financial Times report on Thursday, TSMC plans to start installing equipment at its second advanced fabrication plant in Arizona by summer 2026. That timeline represents a significant acceleration from the company's original target of 2028. Chair CC Wei indicated the company aims to speed things up by several quarters, potentially enabling production of advanced 3-nanometer chips on U.S. soil by 2027.

This isn't just one factory we're talking about. TSMC initially committed $65 billion for three Arizona fabs. One is already operational, and two are under construction. Then the company tacked on another $100 billion for additional fabs, advanced packaging facilities, and a research and development center.

Washington Takes Notice

When you're potentially investing $200 billion in the United States, people in Washington pay attention. Commerce Secretary Howard Lutnick said TSMC could push its U.S. investment beyond $200 billion and create approximately 30,000 jobs. That's a massive expansion from the original $60 billion plan, which Lutnick said has already grown to roughly $160 billion.

Lutnick made these comments while criticizing CHIPS Act subsidies granted to both Intel Corp. (INTC) and TSMC, highlighting the ongoing debate about how America should support domestic semiconductor manufacturing.

Reshuffling Global Production

TSMC's U.S. expansion comes as governments worldwide seek to reduce dependence on China for critical technology. The chipmaker is up more than 40% year to date, powered by AI-driven demand from its largest customers. But satisfying that demand means rethinking where chips get made.

The company is reconsidering its Japan strategy, potentially shifting its second Kumamoto plant toward 4-nanometer production instead of more advanced processes. That change could delay the facility's 2027 launch. TSMC has paused construction activity in Japan while focusing resources elsewhere.

Meanwhile, back home in Taiwan, TSMC is expanding aggressively. The company is growing its 2-nanometer program from seven fabs to ten, spreading across Tainan, Hsinchu, and Kaohsiung. Advanced capacity at home remains a priority even as the company builds out American operations.

The message is clear: TSMC is diversifying its manufacturing footprint to match where its customers are and where geopolitical winds are blowing. With three-quarters of revenue coming from America, building more capacity in the U.S. isn't just good politics, it's good business.

TSM Price Action: Taiwan Semiconductor shares were up 1.46% at $281.00 during premarket trading on Thursday.