Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor producer, has announced plans to invest at least $100 billion to expand its U.S. manufacturing operations. Former President Donald Trump made the announcement at the White House on Monday, alongside TSMC CEO C.C. Wei, Commerce Secretary Howard Lutnick, and White House AI and Crypto Czar David Sacks.
This major investment will fund the construction of three new semiconductor fabrication plants in the U.S., adding to the existing one in operation and two others under development in Arizona. TSMC will also establish two advanced packaging facilities and a research and development center. The expansion is expected to create tens of thousands of jobs and strengthen America’s position in the global chip industry.
“This is an incredible move by one of the most powerful companies in the world,” Trump stated. “It’s about economic security and national security. We’re ensuring that the U.S. becomes a leader in semiconductor production.”
Monday’s announcement brings TSMC’s total investment in the U.S. to approximately $165 billion. Trump suggested that this, along with other initiatives, could push the U.S. toward holding 40% of the global chip manufacturing market—a target that would take years to reach.
Wei emphasized that TSMC’s new facilities will play a key role in advancing AI, smartphones, and other cutting-edge technologies. Tech giants such as Apple, Nvidia, AMD, and Qualcomm have expressed support for TSMC’s expanded U.S. operations.
Nvidia responded positively to the news, stating that the new U.S. fabs will serve as a crucial pillar of a growing technology supply chain.
TSMC’s move aligns with a broader trend of major tech companies increasing their investments in the U.S. Recently, Apple committed $500 billion to expanding its American operations, possibly as a strategy to mitigate potential tariffs on Chinese imports. Additionally, Oracle, OpenAI, and SoftBank announced plans to invest $500 billion in artificial intelligence infrastructure through a new initiative called Stargate.
TSMC first revealed a $12 billion investment in Arizona in 2020 during Trump’s presidency, as concerns grew over America’s dependence on Asian chipmakers. The company’s expansion efforts gained momentum under President Joe Biden, who introduced the CHIPS and Science Act to promote domestic semiconductor production. As a result, TSMC committed to two additional Arizona plants and raised its total U.S. investment to $65 billion. However, at least one facility has faced delays.
Although major investment announcements like these have been made by previous administrations, their long-term success has varied. For instance, in 2017, Trump and Foxconn announced a $10 billion electronics factory in Wisconsin expected to generate 13,000 jobs. However, the project was significantly downsized, and Foxconn ultimately invested only $672 million, creating fewer than 1,500 jobs. The facility is now being repurposed as a Microsoft AI training center.
Despite past challenges, TSMC’s expansion underscores a growing push to establish the U.S. as a global leader in semiconductor manufacturing, securing a competitive edge in AI and other advanced technologies.
