TSMC has begun construction of its third chip plant in Arizona.

This indicates that the world's largest contract chipmaker is accelerating its expansion in the U.S. amid the threat of U.S. tariffs.

US Commerce Secretary Howard Lutnick visited TSMC's facility in Phoenix, Arizona, on Tuesday.

On the same day, TSMC announced the third phase of its U.S. expansion plans.

TSMC's project in in Arizona has been described as the single largest foreign investment in U.S. history.

Earlier, Lutnick had said that Washington could suspend promised Chip Act funding, forcing funded chip companies to significantly expand their investments in the U.S.