TSMC and Trump Announce $100 Billion Investment to Build Five New Chip Factories in the U.S.

TSMC has announced a $100 billion investment in the U.S. to build five new semiconductor manufacturing facilities, including three fabrication plants, two advanced packaging facilities, and a major research and development center. The plan was revealed during a meeting with President Donald Trump, highlighting the need for domestic chip production to reduce reliance on Asian sources amid growing geopolitical tensions. The investment will create 40,000 construction jobs over the next four years.

However, TSMC faces higher operational costs in the U.S., as evidenced by its Arizona plant, which began production in 2024. This has led to a 2% drop in the company’s Taiwan-listed shares due to investor concerns. The expansion aims to reduce supply chain risks for major U.S. tech companies like Nvidia, Qualcomm, and AMD. Additionally, TSMC could help Intel recover through a potential joint venture. The Taiwanese government will review the investment in line with its laws governing large overseas investments, with the move seen as enhancing Taiwan’s competitiveness in the global semiconductor industry.

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• TSMC Unveils $100 Billion Investment in U.S. Chip Plants Amid Geopolitical Tensions

TSMC and Trump Announce $100 Billion Investment to Build Five New Chip Factories in the U.S.

TSMC, the leading Taiwanese semiconductor company, has announced a significant $100 billion investment in the U.S., which will involve building five new chip manufacturing facilities. This includes three new fabrication plants, two advanced packaging facilities, and a major research and development center. The announcement was made in a meeting with U.S. President Donald Trump, emphasizing the need for domestic chip production to enhance national security. TSMC’s expansion will also create 40,000 construction jobs over the next four years. However, the company’s Taiwan-listed shares dropped by 2% as investors expressed concerns over the higher costs of U.S. operations.

The plan aims to reduce reliance on Asian semiconductor production, especially amid rising tensions in Taiwan and growing concerns about supply chain risks for companies like Nvidia, Qualcomm, and AMD. TSMC’s efforts also align with Trump’s broader goal of boosting U.S. manufacturing. The Taiwanese government is expected to review the investment, ensuring it aligns with its laws while supporting Taiwan’s competitiveness globally.

TSMC has unveiled a $100 billion plan to invest in the U.S., which will involve building five new semiconductor factories, including three chip fabrication plants, two advanced packaging facilities, and a research and development center. This announcement was made in collaboration with President Donald Trump, emphasizing the importance of boosting domestic semiconductor production for national security.

The expansion is intended to reduce U.S. reliance on semiconductor imports, especially from Asia, amid growing concerns over China’s increasing influence. The project will create 40,000 construction jobs over the next four years, though TSMC faces higher operational costs in the U.S., as seen in delays at its Arizona plant. The investment follows TSMC’s earlier commitment to expand its U.S. operations, including the development of advanced 2-nanometer technology in Arizona by 2028

. The move is also supported by the U.S. CHIPS and Science Act, which provides subsidies and tax incentives to encourage semiconductor production on U.S. soil.Taiwan’s government will review the investment in line with its laws, ensuring it aligns with Taiwan’s interests and maintains competitiveness in the global semiconductor market. This review will also consider the potential impact on Taiwan’s technological advancements and strategic industries.

The government aims to ensure that while TSMC expands its footprint in the U.S., Taiwan remains the center for cutting-edge semiconductor technologies. There is an emphasis on safeguarding Taiwan’s leadership in high-tech manufacturing while fostering international partnerships to boost the country’s economic growth.

TSMC Unveils $100 Billion Investment in U.S. Chip Plants Amid Geopolitical Tensions

TSMC has announced a significant $100 billion investment in the United States to build cutting-edge semiconductor manufacturing facilities. This investment, revealed by President Donald Trump, is part of TSMC’s ongoing efforts to expand its presence in the US, particularly in Arizona, where the company has already made substantial investments. The new facilities will include three new fabrication plants, two advanced packaging facilities, and a major R&D center, creating tens of thousands of high-paying jobs.

This move comes amid increasing pressure for companies like TSMC to diversify their production outside of Taiwan, given the geopolitical risks from tensions with China. TSMC had previously committed over $65 billion to Arizona factories during the Biden administration. With this new investment, TSMC’s total US investment now exceeds $165 billion, further supporting the development of AI and smartphone technologies.

The Taiwanese government has expressed its intention to review the investment to ensure it aligns with the nation’s interests, emphasizing the importance of Taiwan’s technology sector in maintaining its global competitive edge. TSMC’s expansion is seen as critical for the US as it seeks to reduce reliance on foreign semiconductor supplies, particularly from Taiwan, which is considered a “silicon shield” due to its central role in global chip production.

Trump has also pushed for increased US manufacturing and threatened 25% tariffs on semiconductors produced abroad, creating further incentives for companies to establish operations in the US.