Rahul Somvanshi
Taiwan Semiconductor Manufacturing Company (TSMC) has unveiled plans to invest an additional $100 billion in US chip manufacturing operations over the next four years, bringing its total planned US investment to $165 billion. The announcement marks the largest single foreign direct investment in US history.
TSMC Chairman and CEO Dr. C.C. Wei, alongside President Donald Trump, revealed the expansion will include three new fabrication plants, two advanced packaging facilities, and a major R&D center in Arizona.
“Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality,” said Wei during the White House announcement. “AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications.”
The investment builds upon TSMC’s ongoing $65 billion commitment to its Arizona operations, where one fabrication plant is already in production since late 2024. The expansion is expected to create tens of thousands of high-tech jobs and support 40,000 construction jobs over the next four years.
President Trump called TSMC “the most powerful company in the world” and emphasized both economic and national security benefits. “It’s a matter of economic security, it’s also a matter of national security for us,” Trump stated, noting the investment would help TSMC diversify away from chipmaking in Taiwan.
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The announcement comes amid growing concerns about global semiconductor supply chains and increasing tensions between China and Taiwan. Taiwan currently produces around half of the world’s microchips and almost all of the most advanced ones.
Commerce Secretary Howard Lutnick acknowledged that the investment would help TSMC “avoid paying tariffs,” as Trump has previously threatened 25% duties on semiconductor imports. Trump has repeatedly accused Taiwan of stealing America’s chip manufacturing business.
The expansion will support customers including Apple, NVIDIA, AMD, and Qualcomm. An Nvidia spokesperson said the company “will fully utilize TSMC’s global manufacturing network to enhance our supply agility and resilience.”
This investment follows recent announcements from other tech giants, including Apple’s planned $500 billion US investment and a $500 billion AI infrastructure project called Stargate from Oracle, OpenAI, and SoftBank.
TSMC’s Arizona site currently employs more than 3,000 people across 1,100 acres. The company also operates facilities in Washington state, Texas, and California.
