Semiconductor giant Taiwan Semiconductor Manufacturing Co. (TSMC) announced a $100 billion investment in the U.S. on Monday.
TSMC, a Taiwan-based chipmaker that builds advanced semiconductors which are used to power smartphones and artificial intelligence (AI) models, announced the investment following meetings with President Donald Trump.
The investment is expected to focus on advanced semiconductor manufacturing facilities over the next four years.
TSMC has previously invested in a chip factory in Arizona with an initial $12 billion investment, and last April it announced an additional investment of $25 billion to add a third factory at its Arizona facility by 2030 to bring its total investment there to $65 billion.
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The company also received an award of up to $6.6 billion in grants from the CHIPS Act for the Arizona facility as well as other federal funds from the law that aimed to bolster domestic semiconductor manufacturing in the U.S.
“The most powerful AI chips in the world will be made right here in America, and it will be a big percentage of the chips made by his company,” Trump said during a White House event marking the deal. “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 thousands of jobs – many thousands of jobs and high-paying jobs. In total, today’s announcement brings Taiwan Semiconductor’s investments to about $165 billion.”
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“Semiconductors are the backbone of the 21st century economy and, really, without the semiconductor, there is no economy, powering everything from AI to automobiles to advanced manufacturing, and we must be able to build the chips and semiconductors we need right here in American factories with American skill and American labor,” Trump added.
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TSMC CEO C.C. Wei said that the company’s vision has become a reality at its Arizona facility with 3,000 employees “producing the most advanced chip made on U.S. soil.”
“With the success of our first plan, we are now very happy to announce we are going to invest an additional $100 billion,” Wei said, adding that the company will build additional chip fabrication facilities in addition to a packaging facility.
“For this, all the investment, $165 billion, is going to create thousands of high-paying jobs… and we are most importantly going to produce many AI chips, we’re going to produce many chips to support AI progress, to support the smartphone progress,” he said.
TSMC has historically kept the manufacturing of its most sophisticated chips in Taiwan, and it’s unclear at this time whether some of that production will move to the U.S. with the new investment.
Reuters contributed to this report.
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