TSMC announces $100bn investment in US manufacturing plants |

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, has unveiled plans to invest $100 billion in semiconductor manufacturing across the United States. The announcement was made alongside President Donald Trump, marking a significant boost to America’s domestic technology production capabilities.

The new investment will fund the construction of five advanced fabrication plants, strengthening TSMC’s presence in the US. The initiative builds on its earlier commitments, increasing the company’s total investment in America to $165 billion. TSMC’s Chief Executive, CC Wei, disclosed the details while standing alongside Trump, Commerce Secretary Howard Lutnick, and AI and cryptocurrency adviser David Sacks. Wei remarked, “We are producing the most advanced chip on US soil. Now the vision becomes reality.”

Trump highlighted the national security implications of this investment, explaining that strengthening domestic semiconductor production secures a critical part of the global technology supply chain. He underlined that TSMC will avoid proposed tariffs in return for relocating manufacturing to American soil – a key strategy to maintain trade dominance. Trump also noted that the new facilities would create thousands of high-skilled jobs.

Amid the ongoing tensions surrounding Taiwan and its role in global technology, analysts have pointed to the “silicon shield” that Taiwan’s semiconductor dominance provides. Taiwan produces the majority of the world’s advanced semiconductors, making it a strategic focus for global trade and security. Experts speculate that increasing chip production outside of Taiwan may reduce the country’s leverage but simultaneously strengthen the United States’ economic position in this industry.

The new Arizona-based plants will enable production of TSMC’s most advanced chip technologies, including its 2-nanometre technology, which is slated to begin manufacturing by 2028. The state already houses TSMC’s first US facility established in 2020, which began production last year. This expansion plays a vital role in decoupling the global chip supply chain from heavy reliance on Asia while boosting local production capabilities.

This significant investment is supported by US government initiatives, including subsidy grants from the Chips and Science Act signed into law in 2022. The Act pledged $52.7 billion towards enhancing domestic semiconductor manufacturing and technological research. TSMC has already received substantial support, including a $6.6 billion government subsidy and $5 billion in low-cost loans. These funds complement the company’s goal of establishing global leadership in advanced chip production.

As competition and security concerns grow in the tech sector, the collaboration between TSMC and the US is set to reshape the global semiconductor landscape. With this major investment, TSMC aims to ensure continued innovation while strengthening ties between Taiwan and the United States.