Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip manufacturer, is set to invest $100 billion to significantly expand its semiconductor production capabilities within the United States, as announced by President Donald Trump during a recent event at the White House.
The announcement was made on February 28, 2025, with TSMC’s CEO, C.C. Wei, highlighting the investment as part of the company's efforts to strengthen its footprint in the U.S. semiconductor market. Wei stated, "We are producing the most advanced chip on US soil. Now the vision becomes reality.”
This monumental investment is expected to bolster domestic chip production and reduce reliance on foreign imports, especially from Asia, during a time when U.S. companies are increasingly prioritizing local sourcing for national security reasons. Trump remarked, "Semiconductors are the backbone of the 21st century economy. And really, without the semiconductors, there is no economy," emphasizing the integral role of chip technology across various sectors such as artificial intelligence, automotive industries, and advanced manufacturing.
Following TSMC's previous commitment to invest $65 billion through the construction of three factories already underway in Arizona, this new $100 billion plan will push the company's total U.S. investment to $165 billion. Wei noted, "This investment will create thousands of high-paying jobs," thereby enhancing the U.S. labor market.
The expansion will include the establishment of five additional manufacturing facilities and two packaging plants, with construction activities focused on Arizona. This strategic move aligns with the goals laid out by the Biden administration through the CHIPS and Science Act, which aimed to reinvigorate chip manufacturing post-COVID-19 pandemic disruptions.
The pandemic saw significant interruptions to global supply chains, particularly impacting chip manufacturing sites overseas, which contributed to acute shortages affecting everything from automobiles to consumer electronics. The Biden administration responded with legislation providing upwards of $280 billion to incentivize domestic chip production and research.
While Trump has been vocal about his criticism of the CHIPS Act, focusing on threats to impose tariffs on imported chips to facilitate domestic production, TSMC's investment appears to counter these fears by showing commitment to U.S. manufacturing. "It’s the incentive we’ve created. Or the negative incentive," stated Trump, referring to his administration's policies aimed at reshoring industries.
Beyond economic factors, Trump's remarks also touched on broader geopolitical dynamics, particularly U.S. relations with China. When discussing Taiwan, which TSMC calls home, Trump remarked, “I couldn’t say ‘minimize’ [the impact of potential Chinese aggression] because it would be catastrophic.” This statement reflects underlying tensions and the strategic relevance of semiconductor production, as Beijing continues to assert its claims over Taiwan.
The Taipei Economic and Cultural Representative Office noted the importance of Taiwanese investments within the U.S., highlighting how these business relationships help fortify economic and trade ties between the two areas.
With this announcement, TSMC joins several other key industry players which have pledged substantial investments since Trump took office. Recently, Apple stated it plans to invest over $500 billion across upcoming years, marking a notable trend of tech companies committing to expand their U.S. operations. These investments are being seen as efforts to demonstrate leadership and bolster the U.S. economy, particularly as tensions rise with China.
Trump’s administration is taking credit for these investments, portraying them as results of policy initiatives aimed at improving the business environment for companies operating nationally. Since January 2025, he has consistently hosted industry leaders at the White House to publicize partnerships and investments.
Overall, TSMC’s substantial investment signals not only progress for the semiconductor sector but also reaffirms the U.S.'s position as a leading hub for semiconductor manufacturing. By cultivating advanced technology capabilities domestically, the U.S. hopes to alleviate vulnerabilities exposed by recent global disruptions.
TSMC's commitment to manufacturing within American borders parallels the geopolitical narrative surrounding Taiwan's safety and its semiconductor industry’s future, intertwining economic initiatives with matters of national security.