TSMC Plans Major $100 Billion Investment in U.S. Semiconductor Plants

Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly preparing to announce a significant investment of $100 billion toward building semiconductor manufacturing facilities in the United States over the next four years. This announcement is expected to be made by President Donald Trump at the White House, as indicated by a source familiar with the upcoming event.

Importance in the Semiconductor Industry

TSMC is recognized as the world leader in producing advanced semiconductors that power artificial intelligence technologies, and it serves as a critical manufacturing partner for major companies such as Nvidia Corp. and Apple Inc.. The company’s investment aligns with Trump's agenda to enhance the United States' competitiveness in the AI sector.

C.C. Wei, the CEO of TSMC, plans to be present at the White House for this announcement. TSMC expressed its enthusiasm for the opportunity to meet with the President to discuss shared objectives concerning innovation and growth within the semiconductor industry, although no further details on the investment were provided at that time.

Previous Investments and Future Plans

Currently, TSMC has already committed $65 billion to establish manufacturing plants in Arizona. It remains unclear whether the new $100 billion investment will include this previous commitment or if it will be an additional sum.

Additionally, any new investments will require approval from the Taiwanese government, which has indicated a careful review process for outbound investments in advanced semiconductor technology. A spokesperson for the government did not respond outside of regular office hours.

Context of the Announcement

This announcement comes amid ongoing discussions about tariffs and trade regulations under the Trump administration. The President has previously threatened to impose tariffs on various industries, including semiconductors, which could significantly impact Taiwan, the nation that produces about 90% of the world’s advanced semiconductor wafers, especially those utilized in AI.

Trump has voiced concerns about Taiwan “stealing” American semiconductor technology and has pushed for stronger domestic manufacturing capabilities in this sector. His approach has favored the use of tariffs over government subsidies, unlike the previous administration, which supported the passage of the Chips and Science Act in 2022. This legislation allowed TSMC to secure grants totaling $6.6 billion for three plants in Phoenix.

There have also been reports that Trump administration officials have discussed with TSMC the possibility of acquiring a controlling interest in Intel Corp.'s factories, as part of efforts to address concerns regarding Intel's financial health.

TSMC initially began its investments in the U.S. in 2020, motivated by national security concerns. The company’s first facility in Arizona is operational and has reportedly achieved better early production yields compared to similar facilities in Taiwan.

Investment, Semiconductors, TSMC