TSMC to Invest $100 Billion in U.S. Chip Manufacturing, Expanding Arizona Operations

Taiwan Semiconductor Manufacturing (NYSE:TSM) has announced a $100 billion investment in U.S. chip-making facilities over the next four years, expanding its presence in Arizona. The company plans to construct three new fabrication plants, two packaging facilities, and a research and development center.

The investment, confirmed by U.S. President Donald Trump, is expected to generate 20,000-25,000 high-paying jobs. TSMC, the world’s largest contract chipmaker, supplies advanced AI processors and smartphone chips, playing a critical role in the global semiconductor industry. While the company has traditionally kept its most advanced manufacturing in Taiwan, U.S. officials have encouraged it to shift more production to American soil, particularly in high-tech chip packaging essential for AI applications.

TSMC’s expansion aligns with the U.S. government’s push to reduce dependence on Asian semiconductor manufacturing, a move driven by national security and economic stability concerns. The 2022 CHIPS Act has supported this shift, granting TSMC $6.6 billion in subsidies.

Trump has consistently advocated for increasing domestic semiconductor production, though he has criticized the CHIPS Act, favoring tariffs as a stronger incentive. "We have to have chips made in this country," he stated in February.

This major investment highlights the ongoing U.S. efforts to secure supply chains and strengthen its technological leadership in the semiconductor industry.