Taiwanese semiconductor giant TSMC has announced a $100 billion investment in the United States to build five new chip manufacturing facilities.
The announcement was made on Monday during a meeting between TSMC CEO C.C. Wei and US President Donald Trump at the White House.
The investment includes plans for three new chip fabrication plants, two advanced packaging facilities, and a major research and development center. Trump highlighted the move as a step toward reducing America’s reliance on foreign-made semiconductors.
“We must be able to build the chips and semiconductors that we need right here,” Trump said. “It’s a matter of national security for us.”
TSMC, the world’s largest contract chipmaker and a key supplier to companies like Nvidia, Qualcomm, and AMD, has been expanding its US presence in recent years. The company previously committed $65 billion to its Arizona operations, including the construction of a third factory by 2030.
Despite the major investment, TSMC’s Taiwan-listed shares fell by 1.5% on Tuesday as investors weighed concerns about the higher costs of US-based manufacturing compared to operations in Taiwan.
“Higher costs are definitely a concern for TSMC,” said Andrew Tsai, chairman of Taiwan’s Capital Investment Management Corp.
TSMC’s first Arizona plant faced delays and cost overruns, with production beginning in 2024. The company has not provided a specific timeline for the new facilities but estimates that construction will create 40,000 jobs over the next four years.
The Taiwanese government has stated that it will review the investment in accordance with its regulations, which require approval for large overseas projects. Taiwan Premier Cho Jung-tai emphasized that such investments should strengthen Taiwan’s overall competitiveness while maintaining strong economic ties with the US.
Under the CHIPS and Science Act, signed into law in 2022, the US government has allocated $52.7 billion in subsidies to boost domestic semiconductor production. TSMC has already received $1.5 billion in CHIPS Act funding, and the new $100 billion investment may qualify for further incentives, including a 25% tax credit for manufacturing investments.
For Trump, the announcement aligns with his campaign pledge to revitalize American manufacturing and reduce dependency on foreign supply chains. It also follows recent investment commitments from major companies like Apple, SoftBank, and billionaire investor Hussain Sajwani.
TSMC’s expansion comes amid ongoing geopolitical tensions, particularly concerning China’s claims over Taiwan. The US has been encouraging semiconductor companies to expand operations domestically to mitigate potential supply chain disruptions.
Commerce Secretary Howard Lutnick suggested that TSMC’s decision to invest further in the US was partially influenced by Trump’s new tariffs. However, questions remain over whether the administration will continue subsidies and grants approved under the previous leadership.
Reuters and Independent contributed to this report.
