Chipmaking giant Taiwan Semiconductor Manufacturing Company (TSMC) plans to invest at least $100 billion to expand its U.S. manufacturing operations, President Donald Trump announced on Monday from the White House, alongside TSMC’s CEO C.C. Wei, Commerce Secretary Howard Lutnick, and White House AI and Crypto Czar David Sacks.
TSMC invests $100 billion to expand U.S. manufacturing
This investment will support the construction of three advanced chipmaking fabrication plants in the U.S., in addition to one currently operating and two others under development in Arizona. The expansion is projected to generate tens of thousands of jobs.
As part of this investment, TSMC will also establish two advanced packaging facilities for assembling smaller chips into more powerful systems and will create a research and development center. This brings TSMC’s total U.S. fabrication plants to six, along with the additional facilities.
Trump stated that this announcement increases TSMC’s total U.S. investments to around $165 billion, emphasizing that this move underscores economic and national security. He noted it would help TSMC diversify away from Taiwan.
TSMC is the world’s largest semiconductor manufacturer, with its chips powering various technology products, including iPhones, AI systems, cars, and medical devices. This announcement occurs as the U.S. aims to secure a larger role in the global chipmaking industry and maintain an edge over China in AI technologies.
Trump claimed that TSMC’s investment, along with a few other initiatives, could elevate the U.S. share of the global chipmaking market to 40%, although achieving this goal would likely take years. Wei mentioned plans to produce many chips to support advancements in AI and smartphones, expressing gratitude to TSMC’s customers, including Apple, Nvidia, AMD, and Qualcomm.
An Nvidia spokesperson stated that TSMC’s new fabs will serve as the foundational pillar of a new technology supply chain based in the U.S., further enhancing supply agility and resilience.
TSMC’s announcement follows Apple’s commitment last week to invest $500 billion to expand its facilities and manufacturing projects across the U.S. Oracle, OpenAI, and SoftBank also announced in January plans for a joint venture named Stargate to boost AI infrastructure in the United States, with a combined investment goal of $500 billion.
TSMC initially revealed a $12 billion investment in 2020 to build an advanced semiconductor factory in Arizona due to concerns that U.S. reliance on Asian chipmakers posed a national security risk. The company later increased its investment to $65 billion with the addition of a third facility, supported by a $6.6 billion subsidy from the U.S. Commerce Department.
TSMC has made significant advancements in expanding its operations in the U.S. before this latest announcement. The company’s financial chief, Wendell Huang, expressed confidence in continuing support for U.S. ambitions under the current administration. TSMC’s first Arizona plant has begun supplying advanced chips to Apple.
Historically, new administrations have partnered with companies to announce significant investments aimed at promoting American manufacturing, although success rates have varied. Trump previously announced a $10 billion deal with Foxconn in 2017 for an electronics factory in Wisconsin that ultimately fell short of its job creation goals.
Featured image credit: TSMC
