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Taiwan Semiconductor Manufacturing Co. is investing $265 billion in Arizona to expand global production and mitigate geopolitical risks.

Taiwan Semiconductor Manufacturing Co. is investing $265 billion in Arizona to expand its global production footprint. The company manufactures many of the powerful circuits that fuel artificial intelligence growth, including chips designed by Nvidia.

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As the U.S. and Europe seek to produce more chips domestically, Taiwan Semiconductor Manufacturing Co. faces pressure to move production offshore. U.S. authorities have cautioned that chip tariffs could hurt companies that do not produce products in the U.S. Meanwhile, Europe is seeking to attract more investment from Taiwan. While expanding globally, Taiwan Semiconductor Manufacturing Co. must balance production costs. It is currently more expensive to produce chips outside of Taiwan, and the company's historical dominance is based on manufacturing efficiency. The corporation must maintain its economic advantages while developing more plants across the world.

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