TSMC Announces $100 Billion Investment for US Chip Manufacturing

WASHINGTON — Taiwan Semiconductor Manufacturing Co. (TSMC), the largest chip maker globally, has announced a plan to invest $100 billion in the United States, as confirmed by President Donald Trump on Monday. This new investment is in addition to the $65 billion that TSMC had already announced for its expansion in the U.S.

TSMC manufactures semiconductors for notable companies like Apple, Intel, and Nvidia. The company is currently constructing three facilities in Arizona, having received billions in subsidies from the Biden administration. Its first factory in Arizona has already started mass production of 4-nanometer chips.

During the announcement at the White House, where Trump was joined by TSMC's CEO C. C. Wei, the President described the investment as a "tremendous move" and emphasized its importance for economic security. "Semiconductors are the backbone of the 21st century economy. Without them, there is no economy," Trump stated, highlighting the critical role these chips play in areas like artificial intelligence, automobiles, and advanced manufacturing. He stressed the need for America to produce semiconductors within its own borders using American skills and labor.

CEO Wei explained that this substantial investment will support the establishment of three additional manufacturing plants and two packaging facilities in Arizona. He noted that this $165 billion investment is expected to create thousands of high-paying jobs.

In 2022, former President Joe Biden signed the CHIPS and Science Act, a significant legislation aimed at strengthening U.S. chip manufacturing, particularly after the setbacks during the COVID-19 pandemic that led to shutdowns of overseas factories. This disruption had widespread effects, contributing to issues such as halted automobile assembly lines and rising inflation.

While Trump has shown criticism towards the CHIPS Act, advocating instead for high tariffs on imported chips to encourage domestic manufacturing, he maintains that companies like TSMC don't require federal tax incentives to invest in the U.S.

On the same day, it was reported that 40 employees responsible for executing the Chips Act were terminated at the Commerce Department amidst broader workforce reductions in the Trump administration.

When questioned about whether TSMC's investment could lessen the impact of a potential isolation or takeover of Taiwan by China, Trump remarked that he could not predict if it would 'minimize' the consequences, acknowledging the complexity of the situation. Taiwan, which has been governed separately from mainland China since 1949, remains a focal point of tension due to China's claims of sovereignty over the island. Trump indicated that the new investment would at least ensure that a significant portion of crucial chip manufacturing occurs in the U.S.

The Taipei Economic and Cultural Representative Office, Taiwan's de facto embassy in the U.S., noted that Taiwanese investments in America have surpassed 40% of the total foreign investments made by the island. They expressed optimism that such investments would further solidify U.S.-Taiwan relations.

Bonnie Glaser, director at the German Marshall Fund, mentioned that Taiwan is enhancing its investment in the U.S. to support President Trump’s goals, indicating that the U.S. will greatly benefit from TSMC's investment.

Trump has not clarified his stance regarding U.S. military support for Taiwan’s security but has previously suggested that Taiwan should contribute financially towards its own defense.

In his presidency, Trump has engaged with various business leaders to promote investments aimed at showcasing the economic benefits of his leadership. He noted that his administration has provided both incentives and disincentives to encourage companies to invest in America.

During a separate meeting in January, Trump discussed significant investments with leaders from OpenAI, Oracle, and SoftBank, aiming at a partnership worth up to $500 billion tied to infrastructure for artificial intelligence. That same month, he announced a $20 billion investment by DAMAC Properties for data centers focusing on AI in the UAE.

More recently, Apple announced it would invest over $500 billion in the U.S. within the next four years after a meeting between CEO Tim Cook and Trump.

“I don’t have time to do all of these announcements,” Trump humorously remarked while highlighting various upcoming investments.

The Wall Street Journal was the first to report on the planned announcement of TSMC’s investment.

investment, semiconductors, manufacturing