TAIPEI (Taiwan News) — TSMC’s US expansion in Arizona is set to grow to 12 semiconductor fabs, prompting Taiwanese suppliers to establish operations and ramp up staffing, marking a shift from a “wait-and-see” approach to proactive investment.

Firms including Mega Union, UIS, Marketech, CYH, Trusval, DYC, Lijie, Genii Ideas, Acter, Rayzher, Chern Shuo, Jettech, and C Sun, covering cleanrooms, plant engineering, electromechanical integration, and major equipment suppliers, have seen a surge in visa applications and staffing requests, per Digitimes. This has kept intermediaries and legal service providers in Hsinchu Science Park and Arizona busy, highlighting a peak in supply chain mobilization as a “Mini-Hsinchu” cluster gradually takes shape.

Supply chain insiders told Digitimes this shift is driven not only by TSMC’s plan to build over 10 fabs and anticipated orders from other semiconductor players, but also by US policies such as tariffs, investment incentives, and support in legal, tax, education, and lifestyle services. Over the next decade, these measures could help replicate the Hsinchu Science Park’s semiconductor cluster effect in Arizona.

TSMC is accelerating its Arizona investment, which currently totals US$165 billion (NT$5.27 trillion), including earlier plans for six wafer fabs and two advanced packaging plants. The company noted that constructing N2 (2nm) process fabs with a monthly capacity of 1,000 wafers requires significantly higher capital expenditures than N3 (3nm) fabs, and A14 (1.4nm) production will cost even more per 1,000 wafers.

Additional challenges, including global deployment, investment in specialized process technologies, and inflationary pressures, have also contributed to rising capital expenditures. As a result, TSMC’s 2026 capex has been raised to US$52–56 billion (NT$1.66-1.79 trillion).

At the US government’s request, TSMC acquired a second plot of land to develop an independent gigafab campus. Sources indicate that the Arizona wafer fabs and advanced packaging plants will each add two more facilities, bringing the total to 12, with capital expenditures expected to remain high through 2030.

TSMC’s expansion plan has significantly increased Taiwanese suppliers' willingness to establish US operations. Early movers such as the Chang Chun Group, Sunlit Chemical, Marketech, and UIS are continuously increasing staffing and local footprint.

Other suppliers, including Mega Union, CYH, Trusval, DYC, Lijie, Genii Ideas, Shenghui, Acter, Rayzher, Chern Shuo, and Jettech, are offering higher salaries and benefits than in Taiwan to attract talent. This has dramatically increased demand for visa applications and staffing services, marking a shift from the previous “wait-and-see” attitude.

Insiders told Digitimes that the 12-fab plan represents TSMC’s largest overseas investment in history, evolving from an initial risk diversification strategy into a critical extension of advanced process and packaging capabilities. This will form the cornerstone of the reconstruction of US semiconductor manufacturing.

Beyond securing TSMC orders, factors influencing Taiwanese suppliers’ decisions include prior Taiwan-US tariff agreements, government-backed credit mechanisms totaling US$250 billion (NT$7.99 trillion), and support for accelerating supply chain establishment. Arizona is building a support system, including the Arizona Research Institute, integrating legal, tax, financial, engineering, and lifestyle resources to help smooth the transition for Taiwanese firms.

Early entrants such as Sunlit Chemical are among the few to make significant capital investments, successfully establish operations, and prepare for a public listing as operations expand. Mega Union expects to increase production capacity by at least 30% in 2026–2027, with the Arizona facility breaking ground in 2026 and gradually coming online from 2027.

Equipment suppliers say that US construction and operating costs are two to three times higher than in Taiwan due to expensive labor, strict unions, lower construction efficiency, and lengthy regulatory and environmental approval processes. Overall cost structures remain difficult to optimize.

While conditions have slightly improved, they remain far less favorable than in Taiwan. At present, US projects are “almost unprofitable,” and sometimes operate at a loss, but long-term collaboration and global strategy make participation necessary.

“Those who miss the opportunity can only wait for TSMC to release orders in Taiwan, which limits growth,” said a supply chain insider to the newspaper. There is optimism that US orders could double as expected, and once companies like UIS and Marketech secure a meaningful share, their profits are likely to grow significantly.