Taiwan Semiconductor Manufacturing Co. (TSMC) has announced plans to invest $100 billion in the United States and build five additional factories over the coming years. The announcement was made by TSMC, CEO of CC Wei on Monday during a meeting at the White House with former U.S. President Donald Trump.
“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.”
As the world’s largest contract chipmaker, TSMC is a major supplier to leading U.S. companies, including Apple, Intel, and Nvidia. The $100 billion investment aims to increase domestic production and reduce U.S. reliance on semiconductors manufactured in Asia. This new commitment builds on a previous investment plan. In April, TSMC agreed to increase its planned U.S. investment by $25 billion to $65 billion and to add a third factory in Arizona by 2030.
The push to bolster domestic chip production began under former U.S. President Joe Biden. In 2022, Biden signed the CHIPS and Science Act—a $280 billion initiative designed to revitalize U.S. chip manufacturing following severe supply chain disruptions during the COVID-19 pandemic. The legislation included subsidies for TSMC’s U.S. operations in Phoenix, Arizona.
During the pandemic, the shutdown of overseas chip factories caused widespread shortages, affecting industries such as automotive manufacturing and contributing to rising inflation.
Trump, however, has criticized the CHIPS Act and advocated for a different approach. He has proposed imposing high tariffs on imported chips to encourage domestic production and argued that companies like TSMC do not need federal tax incentives.
TSMC said 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."
Under the Biden administration, the U.S. Department of Commerce successfully persuaded all five leading-edge semiconductor firms to establish manufacturing plants in the U.S. as part of efforts to address national security risks from imported chips.
However, Trump’s Commerce Secretary, Howard Lutnick, recently described the program as "an excellent down payment" to rebuild the industry but has declined to approve grants already endorsed by the department. "I want to read them and analyze them and understand them," Lutnick told lawmakers last month.