Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest an additional $100 billion in the United States, bringing its total U.S. investment to $165 billion, former President Donald Trump announced.
TSMC, the world’s largest semiconductor manufacturer and a key supplier for Apple, Intel, and Nvidia, has already begun mass production at its first Arizona plant. The new investment will fund three more chip manufacturing plants and two packaging facilities in the state.
Appearing alongside TSMC CEO C.C. Wei at the White House, Trump called the expansion a “tremendous move” for U.S. economic security. “Semiconductors are the backbone of the 21st-century economy,” he said. “We must be able to build the chips we need right here in America with American skill and labor.”
Wei emphasized the investment’s economic impact, saying it would create thousands of high-paying jobs. The move follows the 2022 CHIPS and Science Act, a $280 billion law signed by then-President Joe Biden to boost domestic chip production. However, Trump has criticized the act, preferring to impose high tariffs on imported chips rather than offering subsidies. He also argued that companies like TSMC do not need federal tax incentives.
On Monday, 40 Commerce Department employees working on CHIPS Act implementation were dismissed as part of the Trump administration’s effort to downsize the federal workforce, according to a source familiar with the matter. When asked whether TSMC’s investment could reduce the impact of a potential Chinese move against Taiwan, Trump responded, “That would be a catastrophic event, obviously.” He acknowledged that having more chip production in the U.S. would strengthen the country’s position in the global semiconductor industry but did not comment on Taiwan’s security.
Taiwan’s de-facto embassy in the U.S. welcomed the investment, saying it would enhance economic ties between the two nations. Experts suggest the move could strengthen U.S.-Taiwan relations. “Taiwan is stepping up in a way that aligns with President Trump’s priorities,” said Bonnie Glaser of the German Marshall Fund.
