In Phoenix, a Taiwanese chip giant is building a hedge against China

Intel, which hopes to introduce its new production processes within the next two years, objected to TSMC’s suggestions that its technology in Arizona will be the most advanced in the United States in 2024. “I would disagree with that view,” said Ann Kelleher, an executive vice president who Heads manufacturing technology development at Intel.

Arizona state and local officials have already approved financial incentives for the first phase of TSMC’s construction, and the company is expected to apply for federal grants for both phases under the CHIPS Act.

Mr. Chatterjee, the White House adviser, estimated that TSMC’s two new plants in Arizona, once fully operational, could single-handedly satisfy US demands for such advanced chips. But Handel Jones, an analyst who heads international business strategies, said TSMC’s factories in Taiwan will still be in demand, both because of their production capacity and because they will be making more advanced technology by 2026.

TSMC operates four factories in Taiwan that can each process up to 100,000 semiconductor chips each month. In Arizona, TSMC initially said the first plant could process 20,000 chips a month. It now estimates that the output of the two manufacturers combined would be 50,000 per month, or 600,000 annually.

But even relatively small operations in the US can become important, industry executives said, particularly for retail customers like Apple or for producing critical chips in emergency situations.

By adding more advanced production technology in the US, TSMC will “help address weaknesses associated with semiconductor shortages evident over the past few years,” said Bob Lefort, president of the US arm of Infineon, the large German chip maker.

TSMC’s move is also a sign that the CHIPS Act is having an impact on the plans of the big companies, helping to spur not only their spending but also investments by the companies that provide them with production tools and materials.