Taiwan Semiconductor Manufacturing Co. (TSMC) has unveiled plans to invest $100 billion in the United States to expand domestic chip production, Reuters reported. The announcement, made alongside President Donald Trump at the White House, includes the construction of five new semiconductor facilities.
TSMC, the world’s largest contract chipmaker, is a key supplier to major U.S. technology firms, including Nvidia, Qualcomm, and AMD. The investment aims to reduce America’s reliance on semiconductor manufacturing in Asia, particularly as concerns grow over Taiwan’s dominance in the industry and China’s sovereignty claims over the island.
“We must be able to build the chips and semiconductors that we need right here,” Trump said. “It’s a matter of national security for us.”
The expansion will include three new fabrication plants, two advanced packaging facilities, and a research and development center. While no specific timeline was provided, TSMC stated that the initiative will create 40,000 construction jobs over the next four years.
This commitment follows TSMC’s earlier pledge to increase its U.S. investment from $25 billion to $65 billion and build a third Arizona factory by 2030. However, the company has faced cost challenges with its Arizona operations, leading to a 2% drop in its stock price on Tuesday.
According to Reuters, TSMC has also engaged in discussions with Trump administration officials about taking a majority stake in a joint venture with Intel’s factory unit, as part of broader efforts to strengthen domestic semiconductor production.
The investment aligns with Trump’s push to bolster U.S. manufacturing and job creation, reinforcing his campaign promises to reduce reliance on foreign supply chains. TSMC’s move also positions it to benefit from subsidies under the CHIPS and Science Act, which provides financial incentives for U.S.-based semiconductor production.
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