Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has announced a monumental $100 billion investment to expand its U.S. manufacturing footprint.
The announcement was made by President Donald Trump alongside TSMC CEO C.C. Wei at the White House, marking one of the largest foreign investments in American semiconductor production. The funds will go toward the construction of three new chip fabrication plants, in addition to existing and previously announced facilities in Arizona.
The investment aims to solidify the U.S. as a global leader in semiconductor production, an industry critical to national security and technological advancement. Alongside new fabs, TSMC will also build two advanced packaging facilities and a research and development center.
This initiative is a strategic step toward reducing U.S. dependence on overseas semiconductor manufacturing and challenging Asia’s stronghold on the global chip industry.
Why It Matters: Semiconductors are the backbone of modern technology, powering everything from AI systems and smartphones to medical devices and automobiles. TSMC’s expansion is a significant boost to U.S. efforts to secure a leading role in semiconductor manufacturing, especially amid ongoing geopolitical tensions with China.
- TSMC’s Largest U.S. Investment Yet: The $100 billion commitment significantly expands TSMC’s footprint in the United States, bringing its total U.S. investment to approximately $165 billion. This marks a substantial increase from the company’s initial $12 billion Arizona investment announced in 2020.
- Expansion to Six U.S. Fabs: The company will operate a total of six semiconductor fabrication plants (fabs) in the United States. These facilities will produce some of the most advanced semiconductor chips, crucial for AI, smartphones, cloud computing, and defense technologies.
- Massive Job Creation & Economic Boost: TSMC’s investment is expected to create tens of thousands of high-paying jobs, both directly in manufacturing and indirectly across the supply chain. The initiative will also stimulate local economies by attracting suppliers, engineering talent, and research partnerships with universities.
- Strengthening U.S. Semiconductor Leadership: The investment supports the U.S. government’s push for semiconductor independence, reducing reliance on Asia-based production. It also aligns with U.S. policies, such as the CHIPS Act, which aims to bolster domestic chip manufacturing and attract foreign investment.
- Support from Major Tech Companies: TSMC’s U.S. fabs will be key suppliers for leading American tech firms like Apple, Nvidia, AMD, and Qualcomm. These companies rely on TSMC’s cutting-edge chips for AI development, cloud computing, gaming, and high-performance computing applications.
Chip giant TSMC to invest $100B in US manufacturing – Fox Business
