Chip giant Taiwan Semiconductor Manufacturing Co is planning to invest $100bn in the United States and construct five additional factories in the upcoming years, the company has announced.
TSMC CEO CC Wei unveiled the plan on Monday in a meeting at the White House with US President Donald Trump. Trump emphasized the importance of being able to produce chips and semiconductors domestically, stating that it is a matter of national security.
As the world’s largest contract chipmaker, TSMC is a key supplier to major US companies such as Apple, Intel, and Nvidia.
The $100bn investment will boost local production and decrease the US’s reliance on semiconductors manufactured in Asia. This is in addition to a significant prior investment announcement. TSMC previously agreed to expand its planned US investment by $25bn to $65bn and to construct a third factory in Arizona by 2030.
In 2022, former US President Joe Biden signed the CHIPS and Science Act, a comprehensive $280bn law aimed at revitalizing chip manufacturing in the country, particularly in the wake of the COVID-19 pandemic. The law included a subsidy for TSMC’s US unit in Phoenix, Arizona.
The pandemic led to the closure of chip factories, particularly those overseas responsible for producing the majority of processors. This had a domino effect, resulting in broader issues such as the shutdown of automobile assembly lines and the rise of inflation.
Trump has opposed the CHIPS and Science Act, opting instead to threaten high tariffs on imported chips to bring chip manufacturing back to the US. He has also argued that companies like TSMC do not require federal tax incentives.
Investments
Since taking office in January, Trump has hosted numerous business leaders at the White House to highlight a series of investments that showcase his leadership as a boost for the US economy.
In February, Apple announced its intention to invest $500bn over the next four years. Emirati billionaire Hussain Sajwani and SoftBank have also pledged multibillion-dollar investments in the US.
TSMC stated on Monday that it is eager to discuss the shared vision for innovation and growth in the semiconductor industry, as well as explore opportunities to strengthen the technology sector alongside its customers.
Under Biden, the US Department of Commerce has successfully convinced all five leading-edge semiconductor firms to establish factories in the US as part of a program addressing national security risks linked to imported chips.
Commerce Secretary Howard Lutnick under Trump told lawmakers last month that the program was a solid initial step in rebuilding the sector. However, he has hesitated to commit to previously approved grants, citing the need to review and understand them.
