Taiwan Semiconductor Manufacturing Company (TSMC) has now reportedly announced a significant investment of at least $100 billion to expand its chip-manufacturing operations in the United States over the coming years.
This announcement was made by CEO C.C. Wei at a White House event attended by former President Donald Trump.
Trump emphasized the importance of this investment for U.S. national security, particularly given the geopolitical tensions with China.
He pointed out that if TSMC had continued to produce chips in Taiwan, they would have faced substantial tariffs when imported to the U.S. By manufacturing domestically, TSMC avoids these tariffs, which range from 25% to 50%.
The investment will primarily focus on expanding TSMC’s existing facility in Phoenix, Arizona.
The company plans to add three new chip plants, two packaging plants, and a research and development center.
Currently, TSMC employs around 3,000 people at its Phoenix location, and this expansion is expected to create even more jobs in the region.
TSMC initially entered the U.S. market during Trump’s first term with a $12 billion investment in Arizona, which has since grown to a cumulative investment of $65 billion.
With this latest commitment, TSMC’s total investment in U.S. manufacturing will reach $165 billion.
The expansion is seen as a crucial step in bolstering the U.S. semiconductor industry, which plays a vital role in various sectors, including automotive and consumer electronics.
As demand for chips continues to rise, TSMC’s investment aims to ensure a more resilient supply chain and reduce dependence on foreign manufacturing. This move is part of a broader strategy to enhance the technological capabilities of the United States.
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