TSMC to Invest $100 Billion in U.S. Chip Manufacturing, Announced by Trump

WASHINGTON — Taiwan Semiconductor Manufacturing Co. (TSMC), the largest semiconductor manufacturer in the world, plans to invest $100 billion in the United States, according to an announcement by President Donald Trump on Monday. This new commitment is in addition to the $65 billion investment TSMC had already revealed.

TSMC produces chips for major technology companies, including Apple, Intel, and Nvidia. The company has started construction on three chip manufacturing plants in Arizona, following generous subsidies offered by the Biden administration. The first of these factories has already begun mass production of 4-nanometer chips.

During the announcement at the White House, Trump, accompanied by TSMC's CEO C. C. Wei, labeled this investment as a "tremendous move" that relates to economic security. "Semiconductors are the backbone of the 21st-century economy. Without semiconductors, there is no economy," he stated, emphasizing their importance in powering technologies from artificial intelligence to automobile manufacturing. He stressed the need to produce chips in American factories using American labor.

Wei confirmed that the new investment will fund additional chip manufacturing plants and two packaging facilities in Arizona. He mentioned that the overall $165 billion investment would lead to the creation of thousands of high-paying jobs.

In 2022, former President Joe Biden signed the CHIPS and Science Act, a comprehensive $280 billion law aimed at boosting chip manufacturing in the U.S., particularly following disruptions during the COVID-19 pandemic. The pandemic caused many overseas chip factories, which produce the majority of processors, to close, resulting in significant supply chain issues and contributing to inflation.

Trump has expressed criticism of the CHIPS Act, proposing a different approach that includes high tariffs on imported chips to encourage domestic manufacturing. He suggested that companies like TSMC should not rely on federal tax incentives.

Recently, in a move to reduce the size of the federal workforce, the Commerce Department reportedly laid off 40 employees who were involved in the implementation of the CHIPS Act.

When asked about whether TSMC's investment could lessen the impact of China's potential isolation of Taiwan, Trump noted that he could not say it would "minimize" the impact, acknowledging that such an event would be catastrophic. He remarked that the investment would bolster the U.S. position in the essential chip industry.

In response, the Taipei Economic and Cultural Representative Office, Taiwan's de facto embassy in the U.S., stated that investments from Taiwanese companies in the U.S. now account for more than 40% of Taiwan's total foreign investments. They welcomed TSMC's expansion in the U.S. as a way to strengthen economic ties between the two regions.

Bonnie Glaser, managing director of the Indo-Pacific program at the German Marshall Fund, noted that Taiwan's increased investment is supportive of U.S.-Taiwan relations and beneficial for the U.S. economy.

While Trump has yet to clarify his position on U.S. support for Taiwan's defense since taking office, he has mentioned that Taiwan should contribute to its military defense.

Throughout his presidency, Trump has hosted multiple business leaders at the White House to promote investments he claims act as incentives for economic growth. He believes that imposing tariff threats encourages companies to invest more in the U.S.

Trump has made significant announcements regarding investments over time, including a $20 billion investment from DAMAC Properties aimed at building AI-related data centers and a more than $500 billion commitment from Apple for U.S. projects, including a new server factory in Texas.

Last week, after a meeting with Trump, Tim Cook, the CEO of Apple, indicated that the company would move some of its manufacturing from Mexico to the U.S., to which Trump responded, humorously noting he "doesn't have time for all these announcements" as he listed various investments.

The Wall Street Journal was the first to report on this investment announcement.

TSMC, investment, chips