Taiwan Semiconductor Manufacturing Co. (TSMC) will invest an additional $100 billion in U.S. chip production, the company and President Donald Trump announced Monday, expanding its existing $65 billion commitment in Arizona. TSMC, the world’s leading semiconductor manufacturer, is increasing its U.S. footprint amid rising geopolitical tensions in Taiwan and broader efforts to strengthen American chip production.
The investment supports a bipartisan push to expand domestic semiconductor capacity, a key component of national security and artificial intelligence advancements. The company had already pledged to build three manufacturing facilities in north Phoenix, with the first plant beginning mass production of 4-nanometer chips late last year. Two additional factories are under construction and will produce advanced 2-nanometer semiconductors once operational.
The U.S. government has provided substantial financial support for TSMC’s expansion. The Biden administration finalized a $6.6 billion grant agreement with the company last November under the CHIPS and Science Act, a $280 billion initiative aimed at revitalizing U.S. chip production. Monday’s announcement comes as TSMC reportedly weighs a bid to acquire part of Intel’s struggling semiconductor manufacturing business, a move the media reported was encouraged by Trump administration officials.
The investment is part of a wave of large-scale commitments by major tech giants to expand U.S. manufacturing. Apple recently announced plans to invest over $500 billion domestically, including advanced silicon production at TSMC’s Phoenix facilities. Meanwhile, a consortium that includes Oracle and OpenAI has pledged $500 billion for AI infrastructure under the Stargate project. Trump, who appeared at the White House alongside TSMC CEO C.C. Wei, described the investment as a critical step for economic and national security.
Wei said the additional funding will support two more semiconductor fabrication plants and a packaging facility in Arizona. The announcement underscores the competitive dynamics shaping global semiconductor supply chains. During the COVID-19 pandemic, chip shortages disrupted industries worldwide, including automobile manufacturing, and high inflation. The U.S. has since sought to reduce its reliance on foreign production through incentives and policy measures, while Trump has proposed high tariffs on imported chips to further accelerate domestic manufacturing.
In recent months, Trump has engaged with business leaders to highlight private-sector investments in U.S. infrastructure. In January, he hosted executives from OpenAI, Oracle, and SoftBank to announce a $500 billion AI-related investment, followed by a meeting with Apple CEO Tim Cook, after which Apple pledged to expand its U.S. manufacturing operations. TSMC’s latest investment signals continued momentum in America’s semiconductor industry as the country seeks to secure supply chains and drive technological innovation. – By MENA Newswire News Desk.