TSMC's Investment in US Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC), the world's top semiconductor manufacturer, has pledged to invest another $100 billion over the next four years to boost advanced semiconductor manufacturing in the United States. The company's chairman and CEO C.C. Wei announced its expanded investment in the US at the White House with President Donald Trump.

TSMC was originally going to invest $40 billion into building chip-making facilities in Arizona, which it then raised to $65 billion after it was announced as a CHIPS Act recipient getting $6.6 billion in grants under the Biden administration. This announcement is for an additional $100 billion, bringing the company's total planned investment to $165 billion. TSMC called it "the largest single foreign direct investment in US history."

During the announcement at the White House, Trump reportedly said that his threat to impose new tariffs on chip imports prompted TSMC to invest more into its US manufacturing efforts. The president previously told reporters that his administration could collect 25 percent in taxes, or higher, for chip imports. The tariffs could go substantially higher over the course of a year, he said.

The company's original investment already included plans for three fabrication factories in Arizona. This expansion will allow TSMC to build three more fabrication plants, two advanced packaging facilities and a major research and development center. TSMC's facilities in Arizona will manufacture chips for AI and other cutting-edge applications for its customers, which include Apple, NVIDIA, AMD, Broadcom and Qualcomm.

The company didn't give a timeline for when the new facilities will open, but it said its additional investment will lead to 40,000 construction jobs in the next four years and will create "tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D."

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