Taiwan Semiconductor Manufacturing Co (TSMC) will invest at least $100 billion in the United States to expand its semiconductor production, President Donald Trump announced Monday. The investment will go toward building five advanced fabrication facilities, adding to the company’s existing commitments in the US.
Speaking at a White House event alongside TSMC chief executive C.C. Wei, Trump hailed the announcement as another major financial pledge by a private company since his return to office. “We are going to produce many chips to support AI progress, and to support smartphones’ progress,” Wei said.
Much of the funding is expected to go into Arizona, where TSMC has already invested significantly. The company previously committed over $65 billion during former President Joe Biden’s administration, with one Arizona factory starting production in late 2024. The new expansion will include three additional fabrication plants, two advanced packaging facilities, and a research and development centre, creating around 40,000 construction jobs over the next four years, according to a company statement.
Taiwan to review investment
Taiwanese officials said Tuesday they would review TSMC’s investment in the US to ensure it aligns with the country’s semiconductor industry interests.
“The review will be conducted in accordance with the law,” cabinet spokeswoman Michelle Lee said, adding that authorities would consider the company’s growth while safeguarding the sector’s overall competitiveness.
Lee also highlighted the strategic importance of Taiwan’s partnership with the US in high-tech industries. “The close cooperation in high-tech industries between Taiwan and the United States has made Taiwan the most important partner for the United States in maintaining its leading position in high-tech and technology industries,” she stated.
However, concerns persist that shifting too much production abroad could weaken Taiwan’s so-called “Silicon Shield”—a reference to the country’s dominance in chipmaking, which is seen as a key geopolitical asset amid tensions with China.
Tariff pressures and manufacturing push
Trump has been pushing companies to ramp up manufacturing within the US, warning of tariffs on those that do not comply. He has floated a 25 percent tariff on all semiconductor chips made outside the country. His administration has already imposed a 10 percent tariff on Chinese goods and is set to introduce a 25 percent tariff on imports from Canada and Mexico starting Tuesday.
“There’s no room left for Mexico or for Canada,” Trump said Monday. “They’re all set, they go into effect tomorrow.”
Since taking office on January 20, Trump has touted over $1 trillion in investment commitments from major corporations. Apple alone has pledged $500 billion over the next four years. However, critics note that some ambitious economic promises from Trump’s first term failed to materialize.
