President Donald Trump is poised to announce a landmark $100 billion investment from Taiwan Semiconductor Manufacturing Co. (TSMC) aimed at expanding chip manufacturing in the United States. The investment will be channeled into constructing new chip plants over the next four years, signaling a significant shift in the global semiconductor landscape. This strategic move aims to enhance the U.S.'s position as a leading hub for artificial intelligence technology.
TSMC has been steadily increasing its presence in the United States since 2020 when it committed $12 billion to establish its first U.S. chip factory in Arizona. The company has not only fulfilled its initial promise but has also raised its investment in the state to approximately $65 billion with the addition of a third factory. These developments underscore TSMC's dedication to bolstering its U.S. operations.
In January, TSMC's finance chief, Wendell Huang, expressed confidence that the new White House administration would continue supporting the company's ambitions in the United States. This sentiment is reflected in the substantial $6.6 billion subsidy TSMC received from the U.S. Commerce Department, facilitating its expansion endeavors.
The announcement aligns with President Trump's ongoing efforts to establish the United States as a global leader in artificial intelligence. Trump, who has often accused Taiwan of siphoning off U.S. chip manufacturing business, has previously implemented tariffs on semiconductor imports to bolster domestic production. The investment from TSMC is therefore expected to complement these initiatives, furthering the administration's AI infrastructure ambitions.
TSMC is a key supplier of semiconductors for major tech companies such as Nvidia and Apple, particularly for artificial intelligence applications. This new investment is poised to significantly enhance domestic production capabilities, potentially reducing dependency on international semiconductor sources.
The move coincides with recent announcements by President Trump regarding a multibillion-dollar AI infrastructure project involving Oracle, OpenAI, and Softbank. As reported by NBC and initially covered by The Wall Street Journal, this investment marks a pivotal moment for both the U.S. semiconductor industry and TSMC's strategic growth.