TSMC CEO and President Trump Announce $100 Billion Investment to Build Five New US Factories
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Apple chip supplier Taiwan Semiconductor Manufacturing Co (TSMC) is making an additional $100 billion investment in the United States that will see the chipmaker build five additional factories in the country over the next few years, the company’s CEO announced alongside US President Donald Trump on Monday.
TSMC is the world’s largest contract chipmaker and supplies chips to several major US electronics firms, including Apple. The announcement came as CEO C.C. Wei met with Trump at the White House.
“We must be able to build the chips and semiconductors that we need right here,” Trump said. “It’s a matter of national security for us.”
TSMC said the expansion will include three new chip fabrication plants, two advanced packaging facilities and a major Research and Development center.
The $100 billion investment will not only boost domestic chip production, but also make US firms less reliant on Asian-produced semiconductors. TSMC agreed last April to expand its planned US investment to $65 billion and to add a third factory in Arizona by 2030.
This is the latest announcement by major firms promising to make additional investments in their US operations to create more jobs, following President Trump taking office. In February, Apple announced it would invest $500 billion over the next four years, while Emirati billionaire Hussain Sajwani and SoftBank have also promised multi-billion dollar investments stateside.
TSMC said on Monday 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.”
TSMC’s US unit for semiconductor production in Phoenix, Arizona benefited from a $6.6 billion government subsidy in November from the US Commerce Department, which was under then-President Joe Biden at the time. Biden’s CHIPS and Science Act legislation, signed in 2022, provided $52.7 billion in subsidies to boost American semiconductor production and research.
US Commerce Secretary Howard Lutnick said TSMC and other forms are investing in the United States to avoid President Trump’s new tariffs. TSMC’s $100 billion investment will be eligible for a 25% manufacturing tax credit under the 2022 legislation.
Taiwan has long held a dominant position in the chip-making industry, and its chips are used in everything from cellphones to vehicles to video games to military equipment. This has sparked concern over the last decade or so on reliance on Taiwan’s chip making industry, as China ramps up pressure to take over Taiwan and assert its sovereignty claims over the territory, although the democratically elected Taiwanese government is pushing back on Beijing’s claims.
A TSMC spokesperson said in February that the company had received $1.5 billion of the promised CHIPS Act money approved under Biden, before the Trump administration took over.
Lutnick told lawmakers in January that while Biden’s program was “an excellent down payment” to rebuild the sector, he has been reluctant to commit to grants that were approved by the department under the previous administration, saying he wanted to “read them and analyze them and understand them.”
The TSMC award included up to $5 billion in low-cost government loans.
TSMC announced in 2024 that it would produce the world’s most advanced 2-nanometer chip technology at its second Arizona factory, which is expected to begin production in 2028. TSMC will also use its most advanced chip manufacturing technology in Arizona.
The chipmaker has already begun fabricating 4-nanometer chips for US customers at its facility in Arizona.
