The U.S. used to be the global leader in semiconductor manufacturing. Yet decades of offshoring have left the country heavily reliant on advanced computer chips made in Taiwan, Japan and South Korea. To put the current imbalance in perspective: Taiwan’s TSMC, the world’s largest chipmaker, now produces more than half of the world’s advanced chips.1
While it’s true that U.S. juggernauts such as Nvidia, Advanced Micro Devices, Qualcomm and Broadcom have revolutionized everything from wireless communication to artificial intelligence, and that members of the Magnificent 7 (including Apple, Amazon and Tesla) now design their own chips, none of these companies make the little engines chugging at the core of their products. There would be no Apple iPhones or Tesla cars without Taiwan’s chip manufacturing ecosystem.
Yet two recent developments may be marking a crucial turning point for the U.S. semiconductor industry, potentially unlocking attractive opportunities for selective investors all along the semi supply chain.
In March 2025, TSMC announced a fresh $100 billion investment to build various chip facilities in the U.S.—the largest single foreign direct investment in U.S. history. Specifically, the Taiwanese giant plans to establish five plants, including three fabs, two packaging facilities, and a research and development center.2
Also in March, Intel, which has lost ground to competitors in recent years, appointed industry veteran Lip-Bu Tan as its new CEO. Renowned for his successful turnaround of chip design software firm Cadence and his impact on the Electronic Design Automation (EDA) industry over the past decade, Tan is expected to prioritize expanding Intel’s foundry services and advancing AI chip production in seeking to regain the firm’s formerly formidable manufacturing prowess.3
We believe these moves—and perhaps more to come—could signal a broader revival across the U.S. semiconductor ecosystem, creating ripple effects across the economy and unlocking compelling opportunities for investors. The expansion of U.S.-based fabs is expected to drive significant growth in sectors critical to chip production, including equipment manufacturing (think complex lithography machines and wafer-handling equipment), construction and specialty chemicals, among other areas.
Both the Biden and Trump administrations have emphasized the strategic importance of semiconductors, framing the revival of domestic chip manufacturing as both a technological imperative and a matter of economic security. According to the Semiconductor Industry Association (SIA), U.S. fab capacity is projected to grow by an impressive 203% between 2022 and 2032.4
For investors, we believe this resurgence arrives at an opportune time, as semiconductor stock valuations have retreated in the wake of DeepSeek’s announcement that it had developed a large language AI model requiring far less computing power (i.e. fancy chips). With demand for critical production inputs set to accelerate, we believe companies at the forefront of a potential U.S. chipmaking renaissance are strategically positioned to capitalize on emerging opportunities.
