TSMC partners with Trump to invest $100 billion in U.S. semiconductor plants, reducing reliance on foreign-made chips and strengthening national security.
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| TSMC and Donald Trump announce a $100 billion investment in U.S. chip manufacturing, aiming to boost domestic production and reduce reliance on foreign imports. Image: ChicHue |
Washington, D.C., USA — March 4, 2025:
Taiwan Semiconductor Manufacturing Company (TSMC) has revealed plans for a $100 billion investment in the United States, a strategic expansion that includes the construction of five new semiconductor facilities. The announcement was made in collaboration with former President Donald Trump at the White House. This ambitious initiative aims to reduce the U.S.'s reliance on foreign-made chips, enhance national security, and strengthen domestic production capacity.
The new facilities will consist of three chip fabrication plants, two advanced packaging plants, and a major research and development center. TSMC’s CEO, C.C. Wei, emphasized the critical need for domestic chip production, addressing supply chain vulnerabilities and enhancing national defense capabilities.
This $100 billion investment is part of TSMC’s broader U.S. expansion plan, which includes an additional $25 billion investment, bringing its total commitment to $65 billion. The company has also previously announced plans to establish a third factory in Arizona by 2030. The expansion is expected to create 40,000 construction jobs over the next four years, though no specific timeline has been given for the completion of the new facilities.
TSMC’s U.S. operations are crucial for the semiconductor industry, supplying chips to major tech companies like Nvidia, Qualcomm, and AMD. This expansion is set to reduce supply chain risks and might even lead to a potential partnership with rival Intel through a joint venture. For Trump, the announcement delivers on his promise to boost domestic manufacturing and create jobs.
The new investment aligns with the U.S. government’s CHIPS and Science Act, which offers incentives such as a 25% manufacturing tax credit to support semiconductor production. This expansion by TSMC also helps address concerns related to geopolitical risks, particularly China’s claims over Taiwan. It underscores Taiwan’s pivotal role in the global technology supply chain and mitigates over-reliance on Taiwanese semiconductor manufacturing.