Taiwan Semiconductor Manufacturing Co. (TSMC) announced a $100 billion investment plan to build five additional chip facilities in the United States.
The company’s CEO, C.C. Wei, revealed the expansion while meeting U.S. President Donald Trump at the White House. TSMC’s move aims to address concerns over over-reliance on Taiwan for semiconductor production, particularly as China increases pressure on the island.
The expansion will include three new chip fabrication plants, two advanced packaging facilities, and a major research and development center. This announcement follows TSMC’s plan from April last year to increase its U.S. investment from $25 billion to $65 billion and to add a third factory in Arizona by 2030.
The company did not provide a specific timeline for the new investments but said the expansion would create 40,000 construction jobs over the next four years.
TSMC has faced delays in the construction of its first Arizona plant, which began chip production in 2024 at a higher cost compared to its Taiwanese facilities. As a key supplier to major U.S. companies like Nvidia, Qualcomm, and AMD, TSMC’s decision to increase its U.S. production is seen as a step toward securing the supply chain for these firms.
The company could also play a significant role in assisting Intel, with Trump administration officials having discussed a potential joint venture with Intel earlier this year.
The investment announcement aligns with Trump’s campaign promise to support domestic industries and create jobs in the U.S. TSMC expressed its commitment to discussing innovation and growth in the semiconductor industry with its U.S. customers.
Taiwan’s government will review the investment in accordance with its laws, requiring approval for large overseas investments by Taiwanese companies. The review will consider Taiwan’s overall competitiveness and ensure that advanced technologies remain in Taiwan.
TSMC’s plans include producing the world’s most advanced 2-nanometer technology at its second Arizona factory, set to begin production in 2028. The company has also committed to using its most advanced chip-making technology, “A16,” in its U.S. facilities.
The expansion follows the passage of the CHIPS and Science Act in 2022, which provides $52.7 billion in subsidies for U.S. semiconductor production and research. The $100 billion investment by TSMC will be eligible for a 25% manufacturing investment tax credit under this law.
The U.S. government has encouraged global semiconductor companies to establish factories in the United States to mitigate national security risks posed by imported chips.
TSMC’s investment is also influenced by the desire to avoid new tariffs under the Trump administration. Last year, the U.S. Commerce Department finalized a $6.6 billion government subsidy for TSMC’s semiconductor production in Phoenix, Arizona.
TSMC had previously received $1.5 billion in CHIPS Act funding before the current administration took office.
