TSMC Announces $100 Billion Investment in U.S. as Trump Pushes for More Domestic Chip Production

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip manufacturer, is making a massive investment in the United States. President Donald Trump announced on Monday that TSMC plans to invest $100 billion in U.S. chip manufacturing, adding to its already planned $65 billion investment.

Boosting U.S. Semiconductor Manufacturing

Appearing alongside TSMC CEO C.C. Wei at the White House, Trump described the announcement as a "tremendous move" and emphasized the importance of semiconductor production for the economy and national security.

“Semiconductors are the backbone of the 21st-century economy. Without them, there is no economy,” Trump said. “From AI to automobiles, to advanced manufacturing, we must ensure these chips are built right here in American factories with American labor.”

TSMC, which supplies chips to top tech giants like Apple, Intel, and Nvidia, will build three additional semiconductor plants and two packaging facilities in Arizona. Wei stated that this move would create thousands of high-paying jobs and further strengthen America’s role in the global semiconductor industry.

TSMC’s Growing U.S. Presence

TSMC had already announced plans to invest over $65 billion in the U.S., including three chip factories in Arizona. Its first facility has already begun mass production of its advanced 4-nanometer chips. The new investment will bring the total to $165 billion and significantly expand its U.S. footprint.

The announcement aligns with Trump’s push for a more self-reliant American semiconductor industry. The former Biden administration had taken a different approach, signing the CHIPS and Science Act in 2022, a $280 billion initiative aimed at revitalizing U.S. chip manufacturing by offering federal subsidies and incentives to semiconductor companies.

Tariffs vs. Incentives: Trump’s Approach to Bringing Chip Manufacturing Home

While the CHIPS Act focused on subsidies to attract investment, Trump has taken a different stance, favoring high tariffs on imported chips. He has repeatedly criticized the need for federal incentives, arguing that his tariff policies are creating enough pressure to drive investments back to the U.S.

“It’s the incentive we’ve created—or the negative incentive,” Trump said, referring to his tariff strategy that aims to make foreign chip production more expensive compared to domestic manufacturing.

A Wave of Business Investments Under Trump

Since taking office in January, Trump has hosted multiple business leaders at the White House to showcase major corporate investments. Monday’s announcement adds to a growing list of massive commitments made under his administration:

OpenAI, Oracle, and SoftBank Partnership: In January, Trump joined tech leaders to announce a $500 billion investment in artificial intelligence infrastructure.

DAMAC Properties Investment: The Dubai-based real estate giant pledged $20 billion for U.S. data centers focused on AI development.

Apple’s $500 Billion Commitment: Last week, after Apple CEO Tim Cook met with Trump, the company revealed plans to invest $500 billion in the U.S., including a new server factory in Texas. Trump later claimed that Cook assured him Apple’s manufacturing would shift from Mexico to the U.S.

The Future of Semiconductor Manufacturing in America

The COVID-19 pandemic exposed vulnerabilities in the global semiconductor supply chain, leading to chip shortages that disrupted industries like automobile manufacturing and consumer electronics. In response, the U.S. government has been pushing for greater domestic production to avoid similar crises in the future.

TSMC’s additional investment marks a major step toward this goal, ensuring that more advanced chips are manufactured on U.S. soil. With a total commitment of $165 billion, TSMC’s expansion is set to transform Arizona into a major semiconductor hub, reinforcing America’s position in the global tech supply chain.

Industry experts believe that the success of these investments will depend on factors like workforce development, supply chain logistics, and continued government support for the semiconductor industry.

Trump’s latest announcement is another bold move in reshaping America’s tech landscape. With semiconductor production increasingly seen as a matter of economic and national security, this $100 billion investment by TSMC could be a game-changer for U.S. manufacturing.

As more companies commit to expanding their U.S. operations, the next few years will be crucial in determining whether America can reclaim its dominance in chip production.

Stay tuned for further updates on this major development in the semiconductor industry.

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This information is sourced from PBS News