The Semiconductor Factory That Redefines ‘Made in America’

Image Credit: Financial Times

The Secretive US Factory

A massive semiconductor factory under construction in Arizona is drawing global attention—not just for what it plans to produce, but for what it reveals about the limits of economic nationalism. The facility, owned and operated by Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s most influential chipmakers, is intended to help secure America’s place in the global chip supply chain. But in doing so, it quietly exposes a contradiction at the heart of former President Donald Trump’s “America First” agenda.

During his time in office, Trump regularly promoted a vision of American industrial self-sufficiency, urging U.S. companies to bring manufacturing home and reduce reliance on foreign suppliers. He touted tariffs, reshoring initiatives, and aggressive economic rhetoric as tools to rebuild domestic manufacturing. Yet the TSMC plant—now nearing completion with significant U.S. government backing—is being built by a foreign-owned company and staffed by foreign engineers. Most of the advanced machinery required to produce the chips also comes from outside the United States.

The facility, known as Fab 21, represents a major step in diversifying semiconductor manufacturing away from Asia, especially amid growing geopolitical tension with China. When fully operational, it is expected to produce advanced chips critical for defense systems, smartphones, and consumer electronics. But key details remain closely guarded. TSMC has not disclosed the specific clients it will serve from the Arizona site, and concerns about transparency have been raised given the billions in public subsidies involved.

The Biden administration, much like the Trump administration before it, has embraced the plant as a strategic win. Billions in CHIPS Act funding have been allocated to support similar projects aimed at bolstering domestic chip production. But as the factory takes shape, it becomes clear that the United States cannot truly decouple from global supply chains—not even in sectors as critical as semiconductors.

Despite the presence of the facility on U.S. soil, many of the skilled workers and components required to make it functional are being imported. TSMC has had to bring in hundreds of engineers from Taiwan to train local workers, citing a lack of experience in operating the highly specialized equipment. The fabrication machines themselves are sourced from Europe and Asia. As a result, the factory has become a symbol of how industrial strength today depends not just on location, but on global expertise and coordination.

Critics argue that while the TSMC plant fits the narrative of bringing jobs and manufacturing to the U.S., it simultaneously reflects a deeper dependency on foreign firms and talent. The idea of America building everything it needs within its borders remains politically appealing but practically out of reach in high-tech sectors.

This dynamic has broader implications. Semiconductors are essential to everything from smartphones to military hardware, making them a central piece of both economic policy and national security. Policymakers across party lines have acknowledged the need to secure chip supply chains, especially after the disruptions of the COVID-19 pandemic exposed vulnerabilities in global production. But the solutions so far have relied heavily on international partnerships rather than domestic self-reliance.

The TSMC facility’s secrecy also adds a layer of complexity. Few details are available about how decisions are made, what role U.S. authorities play in oversight, or how much control Washington ultimately holds over what is being built with taxpayer support. For advocates of transparency and economic sovereignty, this lack of visibility raises concerns.

At the same time, the factory is a tangible response to the pressures of an interconnected global economy. Rather than reshoring in the traditional sense, the U.S. is now reshaping globalization—seeking strategic autonomy while still leaning on global partners. The Arizona project shows how this middle path might look: public investment, private foreign expertise, and shared geopolitical interest.

As the 2024 election approaches, Trump continues to campaign on a platform of restoring American manufacturing. But the realities on the ground—embodied by the TSMC factory—suggest that rebuilding industrial capacity without foreign involvement is not currently feasible, particularly in specialized sectors like chip production.

Ultimately, the TSMC project illustrates that the “America First” vision remains difficult to reconcile with economic and technological realities. In a sector where expertise, supply chains, and innovation are global by nature, sovereignty is less about cutting ties and more about choosing which partnerships to deepen. The Arizona plant may well strengthen America’s position in the global tech race, but it does so by quietly bending the rules of economic nationalism it was meant to uphold.

This story was originally featured in BBC