{"id":2209,"date":"2026-06-17T18:05:17","date_gmt":"2026-06-17T18:05:17","guid":{"rendered":"https:\/\/tucsonmovingreport.com\/?p=2209"},"modified":"2026-06-17T18:05:17","modified_gmt":"2026-06-17T18:05:17","slug":"arizona-chip-production-lags-behind-global-output-as-us-trade-deficit-climbs","status":"publish","type":"post","link":"https:\/\/tucsonmovingreport.com\/?p=2209","title":{"rendered":"Arizona chip production lags behind global output as US trade deficit climbs"},"content":{"rendered":"
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PHOENIX (AZFamily)<\/b> \u2014 A report from the United States Joint Economic Committee shows the country is running a trade deficit of nearly $56 billion in April.<\/p>\n

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Economists say this means the U.S. is buying more from other countries than it is selling out. The deficit highlights U.S. reliance on imports from Taiwan, especially as Arizona builds up its chip industry.<\/p>\n

Even with investments like TSMC expanding in the Valley, an Arizona State University supply chain economist says it will take years before Arizona production is big enough to make a significant impact.<\/p>\n

Why Taiwan is part of Arizona\u2019s story<\/h2>\n

The gap with Taiwan is a reminder of how much the U.S. and Arizona companies still rely on overseas semiconductors and electronics, even as major chip investments accelerate in the Valley.<\/p>\n

Companies like TSMC and Amkor are expanding operations in Arizona, but experts caution it will take years before local production is large enough to significantly reduce dependence on imported chips.<\/p>\n

Arizona chip production will take time to scale<\/h2>\n

Hitendra Chaturvedi, an ASU supply chain economist, said building and ramping up fabrication facilities is a long process, and even at full capacity, Arizona would represent a fraction of TSMC\u2019s overall production.<\/p>\n

\u201cWe need to understand that manufacturing of a fab facility takes time,\u201d Chaturvedi said.<\/p>\n

He said if current plans stay on track, TSMC\u2019s Arizona operations could eventually reach about 100,000 wafers per month.<\/p>\n

\u201cIf everything goes according to plan, Arizona\u2019s fab manufacturing facilities, by TSMC, will be generating about 100,000 wafers per month,\u201d he said. \u201cThat is 1.2 million per year.\u201d<\/p>\n

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Chaturvedi added that compared with TSMC\u2019s worldwide output, that would still be relatively small.<\/p>\n

\u201cTSMC produces about 17 million wafers per year. So, at 1.2 million, at full production capacity, in 2030, Arizona will be only at 7% of the global production of TSMC,\u201d he said.<\/p>\n

What happens next<\/h2>\n

TSMC has said it expects three fabs operating in Arizona by 2030, though there is still no announced timeline for the remaining three it has discussed long term.<\/p>\n

Economists say the uncertainty matters \u2014 especially with ongoing questions around tariffs and global conflicts that can rattle markets and supply chains.<\/p>\n

They also emphasize that more chipmaking in Arizona doesn\u2019t automatically mean lower prices for consumers, because costs can still be affected by materials, equipment, labor, and broader global market shocks.<\/p>\n

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Read more Study: Lake Mead water levels projected to drop 30 feet by 2028<\/a><\/p>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Economists say this means the U.S. is buying more from other countries than it is selling out.<\/p>\n","protected":false},"author":1,"featured_media":2208,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nArizona chip production lags behind global output as US trade deficit climbs - Tucson Moving Report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tucsonmovingreport.com\/?p=2209\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arizona chip production lags behind global output as US trade deficit climbs - Tucson Moving Report\" \/>\n<meta property=\"og:description\" content=\"Economists say this means the U.S. is buying more from other countries than it is selling out.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/tucsonmovingreport.com\/?p=2209\" \/>\n<meta property=\"og:site_name\" content=\"Tucson Moving Report\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-17T18:05:17+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/tucsonmovingreport.com\\\/?p=2209#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/tucsonmovingreport.com\\\/?p=2209\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/tucsonmovingreport.com\\\/#\\\/schema\\\/person\\\/71841c7d449e6ab1ace6bce2f5277255\"},\"headline\":\"Arizona chip production lags behind global output as US trade deficit climbs\",\"datePublished\":\"2026-06-17T18:05:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/tucsonmovingreport.com\\\/?p=2209\"},\"wordCount\":468,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/tucsonmovingreport.com\\\/?p=2209#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/tucsonmovingreport.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/af040cb22288987ee1396c6fa2fae186.avif\",\"articleSection\":[\"Interesting\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/tucsonmovingreport.com\\\/?p=2209#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/tucsonmovingreport.com\\\/?p=2209\",\"url\":\"https:\\\/\\\/tucsonmovingreport.com\\\/?p=2209\",\"name\":\"Arizona chip production lags behind global output as US trade deficit climbs - 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