TSMC to Invest $100 Billion in U.S. Chip Manufacturing Expansion

Taiwan Semiconductor Manufacturing Company (TSMC), the largest chipmaker globally, has announced plans to invest at least $100 billion to expand its chip manufacturing operations in the United States. This announcement was made during a press conference with President Donald Trump, where it was revealed that the funding will be allocated for the construction of two new chip manufacturing plants in Phoenix, Arizona.

This latest investment builds on TSMC's prior commitment of $65 billion to develop three factories in Arizona, along with an additional $6.6 billion received from the Biden administration under the CHIPS Act. TSMC has already started production of 4-nanometer chips at its existing Arizona facility, with future plants expected to manufacture chips using even more advanced 2nm process technology by the end of the decade.

TSMC CEO C.C. Wei highlighted the significance of this investment, stating it would generate thousands of high-paying jobs and facilitate the production of numerous AI chips. The company had previously announced a delay in the timeline for its second Arizona plant, now scheduled to open in 2027 or 2028.

The announcement coincides with broader efforts to strengthen U.S. semiconductor production amid growing concerns about over-reliance on foreign manufacturing, particularly from Taiwan and China. President Trump emphasized the national security implications of producing semiconductors domestically, stating, "We must be able to build the chips and semiconductors that we need right here."

In related news, Apple recently unveiled plans to invest over $500 billion in the U.S. over the next four years, which includes creating 20,000 jobs and establishing a server factory in Texas. These developments come as the Trump administration prepares to impose tariffs on semiconductors and other goods beginning in April, further motivating companies to enhance domestic manufacturing capabilities.