Despite this growth, TSMC's stock has faced a decline of 20.9% year-to-date, largely due to concerns over trade tariffs imposed during the Trump administration.

This production effort underscores TSMC's commitment to maintaining its leadership in the semiconductor industry amid rising competition and technological advancements.

Taiwan Semiconductor Manufacturing Co. (TSMC) is advancing its chip packaging technology to meet the surging demand for advanced AI chips.

This initiative is driven by the increasing need for powerful hardware to support complex computations and processing tasks in the rapidly evolving AI sector.

Currently, TSMC is producing Nvidia's Blackwell chips at its facility in Phoenix, Arizona, with additional assembly operations planned for Texas.

Despite recent stock challenges, TSMC holds a Strong Buy consensus rating, with an average price target suggesting a potential upside of 54.5%.

With clients including major tech companies like Apple, AMD, Amazon, Nvidia, and Google, TSMC plays a critical role in the global tech supply chain.

President Trump recently announced tariffs on imported semiconductors, while also expressing flexibility for certain companies, highlighting the importance of domestic chip production.

In the first quarter of 2025, TSMC reported a remarkable revenue increase of 41.6%, totaling 839.25 billion New Taiwan dollars, equivalent to $25.5 billion.

As generative AI continues to grow, TSMC's new technology is timely and essential for addressing the anticipated surge in computing power requirements.

The new 'panel-level' advanced chip packaging technology will utilize a square substrate to accommodate more semiconductors, significantly enhancing computing capabilities over traditional methods.

TSMC is constructing a production line for this innovative packaging at its facility in Taoyuan, Taiwan, with small-scale production expected to begin around 2027.