Taiwan Semiconductor Manufacturing Co (TSMC) has revealed plans to invest $100 billion in the United States to build five additional semiconductor factories in the coming years. TSMC’s CEO, CC Wei, shared this announcement during a meeting with US President Donald Trump at the White House on Monday. Trump emphasized the national security importance of producing chips domestically, stating, “We must be able to build the chips and semiconductors that we need right here.”
TSMC, the world’s largest contract chipmaker, supplies major US companies, including Apple, Intel, and Nvidia. This $100 billion investment is aimed at boosting domestic production and reducing the US’s dependence on Asian semiconductor manufacturing. The new commitment adds to TSMC’s previous $65 billion investment, which included a $25 billion increase announced in April, and plans to add a third Arizona factory by 2030.
In 2022, former President Joe Biden signed the $280 billion CHIPS and Science Act, designed to revitalize US chip manufacturing, especially after the COVID-19 pandemic. The act provided a subsidy for TSMC’s Phoenix, Arizona facility. During the pandemic, the closure of foreign chip factories disrupted global supply chains, causing wide-reaching effects, including halting automobile production and contributing to inflation.
Trump has criticized the CHIPS Act, advocating for high tariffs on imported chips to encourage domestic manufacturing instead, and argued that companies like TSMC don’t require federal tax incentives. Since taking office, Trump has met with numerous business leaders to promote investments that align with his vision of strengthening the US economy.
TSMC expressed its eagerness to explore further innovation and growth opportunities in the semiconductor industry, aligning with its customers. Under Biden’s administration, the Department of Commerce has convinced top semiconductor companies to establish US factories to address national security concerns linked to imported chips. Trump’s Commerce Secretary, Howard Lutnick, has praised this initiative as a valuable first step but has yet to approve previously granted grants, stating he needs more time to review them.
