TSMC Announces $100 Billion Investment to Expand U.S. Chip Manufacturing

By Evans Momodu
4 minute digest
Published 9:41 UK GMT, March 4, 2025

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, is set to invest at least $100 billion in expanding its U.S. semiconductor manufacturing operations. The announcement was made by President Donald Trump at the White House on Monday, alongside TSMC CEO C.C. Wei, Commerce Secretary Howard Lutnick, and White House AI and Crypto Czar David Sacks.

TSMC’s U.S. Expansion to Strengthen Semiconductor Industry

This strategic investment aligns with broader efforts to boost American chip manufacturing and strengthen the U.S. semiconductor supply chain. The company’s expansion will involve the construction of three new advanced semiconductor fabrication plants in the U.S., supplementing its existing Arizona fabs. In total, TSMC will now operate six U.S. semiconductor fabrication plants.

Additionally, TSMC’s expansion includes two advanced packaging facilities, where cutting-edge chip assembly will take place, and a state-of-the-art R&D centre focused on next-generation AI chips, automotive semiconductors, and high-performance computing (HPC) processors. The initiative is expected to create tens of thousands of high-tech jobs in the U.S.

TSMC’s Total U.S. Investment Nears $165 Billion

With this latest commitment, TSMC’s total U.S. investment will reach approximately $165 billion, marking one of the most significant expansions in global chip manufacturing.

“This is a game-changing move by the most powerful semiconductor company in the world,” said Donald Trump. “It’s not just about economic security; it’s about national security. We are ensuring chip production is diversified beyond Taiwan and strengthening the U.S. semiconductor industry.”

U.S. Strengthens its Position in the Global Chip Market

TSMC’s announcement comes at a time when the United States is working to secure a stronger foothold in the global semiconductor industry and maintain a lead in the AI race against China.

The expansion aligns with U.S. efforts to boost domestic chip production, reduce reliance on foreign semiconductor suppliers, and support critical industries, including smartphones, AI technology, electric vehicles (EVs), and medical devices.

During Monday’s event, TSMC CEO C.C. Wei confirmed the company’s commitment to supporting AI advancements and smartphone innovation, highlighting partnerships with major clients such as Apple, Nvidia, AMD, and Qualcomm.

“TSMC’s new U.S. fabs will be the foundation of a resilient semiconductor supply chain,” said an Nvidia spokesperson. “We will fully leverage TSMC’s global chip manufacturing network to enhance supply chain agility and chip production resilience.”
Source: CNN 
Image: YouTube