Introduction to TSMC’s Investment Plans

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor manufacturer, has committed to investing an additional $100 billion over the next four years to enhance advanced semiconductor manufacturing in the United States. This significant investment was announced by the company’s Chairman and CEO, C.C. Wei, at the White House in the presence of President Donald Trump.

Expansion of Investment in the US

Initially, TSMC had planned to invest $40 billion in building chip-making facilities in Arizona. However, following the announcement that it would receive $6.6 billion in grants under the CHIPS Act during the Biden administration, the company raised its investment to $65 billion. The latest announcement of an additional $100 billion brings the total planned investment to $165 billion, which TSMC describes as "the largest single foreign direct investment in US history."

Impact of Tariff Threats on Investment Decisions

During the White House announcement, President Trump reportedly stated that his threat to impose new tariffs on chip imports was a significant factor in TSMC’s decision to increase its investment in US manufacturing efforts. Previously, the president had mentioned that his administration could impose taxes of 25 percent or higher on chip imports, with the potential for tariffs to increase substantially over a year.

Details of the Expanded Investment

The original investment plan included the construction of three fabrication factories in Arizona. The expanded investment will enable TSMC to build three additional fabrication plants, two advanced packaging facilities, and a major research and development center. The facilities in Arizona will be responsible for manufacturing chips for AI and other cutting-edge applications for TSMC’s clients, including prominent companies such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm. Although a specific timeline for the opening of the new facilities has not been provided, the company expects its additional investment to create 40,000 construction jobs over the next four years and generate "tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D."