TSMC Boosts US Investment by Another $100 Billion Amid Geopolitical Concerns
Taiwan Semiconductor Manufacturing Company (TSMC) significantly increased its investment in US chip manufacturing to $165 billion on Monday, after announcing a $100 billion plan alongside President Donald Trump at the White House. “With the success of our first fab in Arizona, along with the required government support and strong customer partnerships, we intend to expand our US semiconductor manufacturing investment,” TSMC chairman and CEO CC Wei said. This expansion will fund three new fabrication plants, two advanced packaging facilities, and a major R&D centre in Arizona, solidifying the project as the largest single foreign direct investment in US history. This is signaling a major shift in the global semiconductor landscape. This new investment builds on TSMC’s previous commitment of $65 billion for US operations, which already includes three Arizona factories under construction. The first of these facilities has been in volume production since late 2024, producing 4-nanometer chips. According to Wei, the expansion will not only increase manufacturing capacity but also establish the company’s first US advanced packaging investments, completing the domestic AI supply chain. President Trump emphasised the strategic importance of domestic semiconductor manufacturing during the announcement. “We must be able to build the chips and semiconductors we need right here in American factories.” He described the move as critical to national security and economic stability. TSMC also anticipates creating “hundreds of billions of dollars in semiconductor value for AI and other cutting-edge applications”, according to the company. The giant also estimates that this expansion will support 40,000 construction jobs over the next four years and “create tens of thousands of high-paying, high-tech jobs” in advanced chip manufacturing and R&D. “We’re driving over $200 billion in economic output across the nation,” the company added in a post on LinkedIn. The initiative aligns with efforts to reduce reliance on Asian-made semiconductors, a vulnerability exposed during pandemic-related supply chain disruptions. The Times of India noted that some officials in Taiwan have raised concerns about the potential ‘Americanisation’ of TSMC, fearing a drain of talent and resources from the island. However, Taiwan’s economics minister Kuo Jyh-Huei stated that such concerns are overblown, as reported by Bloomberg, emphasising the continued importance of TSMC’s operations within Taiwan. The announcement comes amid evolving US-Taiwan relations and concerns over China’s claims to Taiwan. When asked if this investment could mitigate risks should China isolate or seize Taiwan, Trump acknowledged it as a step toward securing critical industries but avoided broader geopolitical implications. The $165 billion commitment follows other significant announcements during Trump’s presidency, like the tariffs to be imposed on semiconductors, Apple’s pledge to invest $500 billion in US operations and a $20 billion data centre project by DAMAC Properties. This development also raises questions about the future of federal incentives for chipmakers under the CHIPS Act, signed into law by former President Joe Biden in 2022. Trump has criticised such subsidies and advocated for tariffs to encourage domestic production. Furthermore, it was revealed that 40 commerce department officials involved in CHIPS Act implementation were recently laid off as part of workforce reductions.
This expansion will fund three new fabrication plants, two advanced packaging facilities, and a major R&D centre in Arizona.
This expansion will fund three new fabrication plants, two advanced packaging facilities, and a major R&D centre in Arizona.
["investment", "tsmc"]
["Go", "investment", "TPU", "programming_languages:R", "AI", "programming_languages:Go", "RAG", "Aim", "disruption", "tsmc", "R"]
["AI", "Aim", "RAG", "TPU", "R", "Go", "disruption", "programming_languages:R", "programming_languages:Go"]
An information designer who loves to learn about and try new developments in the field of tech and AI. She likes to spend her spare time reading and exploring absurdism in literature.