Taiwan Semiconductor Manufacturing (TSM, Financial) shares rise nearly 2% on early trading Wednesday on the news that the company has broken ground on its third semiconductor facility in Phoenix, Arizona, expanding its already substantial footprint in the U.S.

The latest site is expected to generate around 6,000 jobs and will focus on producing cutting-edge chips using 2-nanometer or more advanced technology, with production targeted to begin before the end of the decade.

The launch event was attended by U.S. Commerce Secretary Howard Lutnick, who called the move a “milestone” for domestic chip production. It aligns with Washington's push to localize semiconductor manufacturing and reduce reliance on overseas supply chains.

TSMC's investment in the U.S. now totals an estimated $165 billion, with most of the funds directed toward Arizona expansion. The commitment includes a previously announced $100 billion plan to build out U.S. capacity over four years.

The chipmaker remains a key supplier to tech giants including Apple (AAPL, Financial), Intel (INTC, Financial), and Nvidia (NVDA, Financial). As U.S. tariffs continue to pressure offshore manufacturing, the Arizona facilities are seen as central to reshoring efforts.