While the plans are still in preliminary stages of seeking potential partners and assessing needs, they mark a shift in strategy for TSMC, which has historically concentrated the majority of its chip production in Taiwan. Why it's worth watching: Building foundries in key countries follows a global trend to decentralize chip production from supply chains rooted in Taiwan and China.

Droughts in Taiwan also impeded production due to stringent water use restrictions. One-third of Asian chipmakers, 67% of North American companies, and 63% of European companies say it’s difficult to find qualified workers. North America and Asia also reported rising labor costs, which further complicates their factory staffing issues.

Taiwan, home to chip manufacturing giant TSMC, accounted for over 60% of global foundry revenues in 2020, according to TrendForce. That market dominance eclipses the next leading country (South Korea), which made up just 18% of global foundry revenues.