Taiwan Semiconductor Manufacturing Company (TSMC) will invest $100 billion to expand semiconductor production in the United States, former President Donald Trump announced on Monday.
The investment will be used to build five new chip fabrication plants in Arizona, further strengthening the U.S. semiconductor industry.
Calling the move a “tremendous step”, Trump praised TSMC as the “most powerful company in the world” and emphasized its role in advancing the country’s artificial intelligence (AI) sector. This latest investment raises TSMC’s total commitment in the U.S. to $165 billion.
Strengthening AI and National Security
TSMC is one of the world’s leading chip suppliers, producing semiconductors for major tech giants like Nvidia and Apple, particularly for AI-related applications. Trump highlighted the importance of bringing semiconductor production back to the U.S., calling it a matter of economic and national security.
Last month, Trump announced a major AI infrastructure project in collaboration with Oracle, OpenAI, and SoftBank. His administration has been pushing to make the U.S. a global leader in artificial intelligence while reducing dependence on foreign semiconductor manufacturers.
TSMC’s Expanding Presence in the U.S.
TSMC has been expanding its U.S. footprint for years. In 2020, the company initially committed $12 billion to build its first Arizona chip plant. That investment later grew to $65 billion with the addition of a third factory. The company has also received $6.6 billion in subsidies from the U.S. Commerce Department to support its American operations.
Wendell Huang, TSMC’s Chief Financial Officer, recently stated that he is confident the U.S. government will continue backing the company’s ambitious expansion.
A Major Win for U.S. Tech Industry
This investment is expected to boost U.S. semiconductor supply chains and strengthen Nvidia and Apple’s access to advanced chips. A spokesperson from Nvidia told that the company “will fully utilize TSMC’s global manufacturing network” to enhance supply chain resilience and efficiency.
Trump has long criticized Taiwan’s dominance in chip production and has imposed tariffs on semiconductor imports. With TSMC’s expanding U.S. operations, the country is taking a significant step toward reducing its reliance on foreign chipmakers.
This announcement marks one of the largest foreign investments in the U.S. semiconductor industry, positioning Arizona as a major hub for chip manufacturing and securing America’s place in the future of AI and advanced technology.
The Information is Collected from CNBC and CNN.
