TSMC CEO unveiled the plan alongside the US president, marking the latest company to commit to investments since Donald Trump assumed office.
Chip manufacturing giant Taiwan Semiconductor Manufacturing Co (TSMC) has announced its intention to invest $100 billion in the United States and construct five additional factories in the coming years.
TSMC CEO CC Wei revealed the plan on Monday during a meeting at the White House with US President Donald Trump. “We must be able to produce the chips and semiconductors we need right here,” Trump emphasized. “It’s a matter of national security for us.”
TSMC, the world’s largest contract chipmaker, is a key supplier to major US companies, including Apple, Intel, and Nvidia.
The $100 billion investment, aimed at boosting domestic semiconductor production and reducing US reliance on Asian-made chips, builds on a previous major investment announcement. In April, TSMC agreed to expand its planned US investment by $25 billion to $65 billion and add a third factory in Arizona by 2030.
Former US President Joe Biden in 2022 signed the $280 billion CHIPS and Science Act to revitalize domestic chip manufacturing, particularly in the wake of the COVID-19 pandemic. The legislation included subsidies for TSMC’s facility in Phoenix, Arizona.
During the pandemic, chip factories, especially those overseas producing the majority of processors, shut down, causing widespread disruptions. This had a ripple effect, leading to issues such as halted automobile assembly lines and contributing to inflation.
Trump has criticized the CHIPS Act and adopted a different strategy, threatening to impose high tariffs on imported chips to bring chip manufacturing back to the US.
Trump has also stated that companies like TSMC do not require federal tax incentives.
Investments
Since taking office in January, Trump has hosted multiple business leaders at the White House to highlight a series of investments that showcase the economic benefits of his leadership.
In February, Apple announced a $500 billion investment over the next four years. Emirati billionaire Hussain Sajwani and SoftBank have also pledged multibillion-dollar investments in the US.
TSMC stated on Monday that it looks “forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to strengthen the technology sector alongside our customers.”
Under Biden, the US Department of Commerce successfully convinced all five leading-edge semiconductor companies to establish factories in the US as part of a program to mitigate national security risks associated with imported chips.
Trump’s Commerce Secretary, Howard Lutnick, told lawmakers last month that the program was “an excellent down payment” to rebuild the sector. However, he has hesitated to commit to grants already approved by the department, saying he needed to “read them, analyze them, and understand them.”
Stay updated with the latest news and stories by visiting ZTC News and Z News Today. Explore a wide range of topics and stay informed with reliable and timely updates!