TSMC and Trump Announce $100 Billion Investment In U.S. Chip Manufacturing

President Donald Trump and Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment plan in the United States on Monday after meeting at the White House.

According to Reuters, TSMC, the world’s largest contract chipmaker, will build five more chip facilities in Arizona to boost domestic production and create over 40,000 construction jobs. Three of these facilities will focus on chip fabrication, while the other two will specialize in advanced packaging.

“This $100 billion in new investment will go into building five cutting edge fabrication facilities in the great state that we just discussed, Arizona, and will create many thousands of jobs—high paying jobs,” said Trump.

The new investment aims to reduce U.S. reliance on Asian semiconductor production. TSMC had previously committed to expanding its U.S. operations—announcing in April 2024 an expansion of facilities in Arizona and increasing investments from $25 billion to $65 billion to establish a third facility by 2030. However, the company has faced delays as production costs in the U.S. are significantly higher compared to Taiwan.

“Higher costs are definitely a concern for TSMC,” said Andrew Tsai, chairman of Taiwan consulting firm Capital Investment Management Corp.

With the new investment, TSMC commits to a total of $165 billion, strengthening its ties with the current U.S. administration and American companies, amid tariff tensions, chip technology restrictions with China, and intensifying market competition.

In November 2024, the U.S. government ordered TSMC to halt shipments of AI chips to China after one of the company’s advanced AI chips was found in a Huawei AI processor, potentially violating the strict export controls imposed by the U.S. government.

“We must be able to build the chips and semiconductors that we need right here,” said Trump on Monday. “It’s a matter of national security for us.”

Meanwhile, OpenAI and TSMC have been reportedly collaborating since last year to develop custom AI chips, with plans to launch their models by the end of 2025.