Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s largest semiconductor manufacturers, announced at the White House that it will invest an additional $100 billion in the US. President Donald Trump was also present alongside TSMC CEO C. C. Wei at the event.
As a part of this fresh investment, the company will use the fund to build three new semiconductor factories. This investment is on top of the company’s existing $65 billion commitment in the country. Interestingly, TSMC is already building five state-of-the-art fabrication facilities in Arizona.
The investment aligns with broader strategic goals to strengthen the US chip industry amid geopolitical tensions, particularly concerning China’s stance on Taiwan. By expanding its operations in the US, TSMC aims to mitigate potential disruptions in the semiconductor supply chain.
Currently, Taiwan, South Korea, and China are considered major hubs for chip manufacturing. Notably, TSMC is a prominent semiconductor supplier for big tech US-based firms like Apple, Intel, and Nvidia.
Meanwhile, for the United States, this move is expected to bolster the country’s position in the global semiconductor industry by increasing domestic chip production capacity. The investment is likely to create thousands of jobs and support advanced semiconductor research and production.
Speaking of Trump’s response, the US President praised TSMC’s investment in semiconductor manufacturing in the country, and termed it as a ‘tremendous move.’ Trump calls semiconductors the ‘backbone of the 21st-century economy’ because they are essential for modern technology.
Trump argues that without semiconductors, the economy would struggle because so many industries depend on them. He also claimed that with TSMC’s investment and a few other projects, the US could potentially produce 40% of the world’s semiconductors (computer chips). However, this is a very ambitious claim because currently, the US only produces around 10-12% of the world’s chips.
The move becomes more significant as we already know semiconductors are used in many industries, including artificial intelligence (AI), automobiles, and advanced manufacturing – all of which drive economic growth and innovation.
After the regime shift in the US, major tech companies – including TSMC, Apple, Oracle, OpenAI, and SoftBank – are committing to investing hundreds of billions of dollars in the country, to build new facilities, expand manufacturing, and develop AI infrastructure.
For example, at the beginning of this year, Oracle, OpenAI, and SoftBank jointly announced a new project – Stargate, under which these companies are committed to investing $500 billion into AI infrastructure. Additionally, Apple recently announced a $500 billion investment to expand its facilities, manufacturing, and projects across the United States over the next 4 years.
