Taiwan Semiconductor Manufacturing Co. (TSMC) has unveiled plans for a new $100 billion investment in the United States, which includes the construction of five additional semiconductor facilities in the coming years. The announcement was made by TSMC CEO C.C. Wei alongside U.S. President Donald Trump at the White House on Monday.
Taiwan’s TSMC, the world’s leading contract chipmaker and a key supplier to major U.S. tech firms, revealed that the expansion will include three semiconductor fabrication plants, two advanced packaging facilities, and a major research and development center. This investment is in addition to TSMC’s previous commitment of $65 billion, which was announced in April when the company confirmed the addition of a third factory in Arizona by 2030.
“We must be able to build the chips and semiconductors that we need right here,” Trump stated. “It’s a matter of national security for us.”
While TSMC has not specified a timeline for the new facilities, the company estimates that the expansion will create 40,000 construction jobs over the next four years. Although the construction of its first Arizona plant faced delays, production ultimately commenced on schedule in 2024.
As a key manufacturing partner for companies such as Nvidia, Qualcomm, and Advanced Micro Devices, TSMC plays a crucial role in the U.S. semiconductor industry. Increasing its manufacturing footprint in the U.S. could also help mitigate supply chain risks for American tech firms. Additionally, the company may have a role in assisting Intel, as reports indicate that Trump administration officials recently held discussions with Wei about a potential majority stake in a joint venture involving Intel’s factory unit. However, Intel has not commented on these reports.
For Trump, this announcement aligns with his campaign promise to strengthen domestic industries and create jobs. It follows other major investment commitments in the U.S., including Apple’s pledge of $500 billion over four years and multi-billion-dollar investments from Emirati billionaire Hussain Sajwani and SoftBank.
TSMC expressed enthusiasm about working with U.S. stakeholders, stating that it looks “forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers.”
Impact of the CHIPS Act
TSMC first committed to establishing facilities in Arizona in 2019, following efforts by the Trump administration. This initiative contributed to the introduction of legislation that later became the CHIPS and Science Act, enacted in 2022 under President Joe Biden. The act allocated $52.7 billion in subsidies to boost American semiconductor production and research.
In 2023, the U.S. Commerce Department approved a $6.6 billion subsidy to support TSMC’s semiconductor production in Phoenix, Arizona. The newly announced $100 billion investment would also qualify for a 25% manufacturing investment tax credit under the 2022 legislation.
During Biden’s presidency, the Commerce Department successfully encouraged all five leading-edge semiconductor firms to establish U.S.-based factories to address national security concerns associated with reliance on imported chips. Taiwan’s dominant position in global semiconductor manufacturing—critical for products ranging from smartphones to defense technology—has raised concerns about supply chain vulnerabilities, particularly amid ongoing tensions with China. While China claims Taiwan as its territory, the island’s democratically elected government rejects these claims.
Commerce Secretary Howard Lutnick remarked that TSMC and other semiconductor firms are investing in the U.S. to avoid Trump’s newly introduced tariffs. In January, Lutnick told lawmakers that the Biden administration’s semiconductor program was “an excellent down payment” for revitalizing the industry but has since withheld some grants for further review.
Last year, TSMC agreed to produce the world’s most advanced 2-nanometer semiconductor technology at its second Arizona facility, scheduled to begin production in 2028. The company also committed to deploying its latest chip manufacturing process, known as “A16,” at the Arizona site.
 has unveiled plans for a new $100 billion investment in the United States,){kind=link}