The Existential Overhang
Taiwan risk is the single biggest uncertainty in the TSMC thesis. The company manufactures 92% of the world's advanced chips on an island 100 miles from China. The Arizona expansion is de-risking this, but 80%+ of leading-edge production remains in Taiwan.
Arizona Exceeds Expectations
The Arizona fab achieved 92% yields — surpassing Taiwan by 4 percentage points — demolishing skeptics who doubted US manufacturing viability. The expansion to 5 fabs and $165B total investment signals TSMC's long-term commitment to US-based production.