TSMC Announces $100 Billion US Investment to Build Five New Chip Factories

Taiwan Semiconductor Manufacturing Co has announced plans to invest $100 billion in the United States and construct five more factories in the upcoming years.

TSMC's CEO CC Wei revealed the proposal on Monday during a meeting at the White House with US 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.”

TSMC, the largest contract chip manufacturer globally, is a key supplier for prominent American companies such as Apple, Intel, and Nvidia.

The $100 billion investment, aimed at increasing domestic production and reducing US dependence on semiconductors manufactured in Asia, is supplemental to a significant previous investment declaration. In April, TSMC consented to increase its intended investment in the US by $25 billion, raising the total to $65 billion, and to establish a third factory in Arizona by 2030.

In 2022, former US President Joe Biden enacted a comprehensive $280 billion law, the CHIPS and Science Act, aimed at revitalizing semiconductor production in the US, particularly in response to the COVID-19 pandemic. It featured a subsidy for TSMC’s American division located in Phoenix, Arizona. Throughout the pandemic, semiconductor factories, particularly those abroad producing most of the chips, closed. This created a ripple effect that resulted in broader issues, including halting automobile factory production lines and driving inflation.