Trump, TSMC unveil $100bln plan to build five US factories
3 Min Read
Announced during a White House meeting with US President Donald Trump, the $100 billion plan underscores efforts to boost domestic semiconductor production and reduce reliance on Asian supply chains.
-
This photo shows the icon of TSMC during the Taiwan Innotech Expo at the World Trade Center in Taipei, Taiwan, on Friday, October 14, 2022. (AP)
Taiwan Semiconductor Manufacturing Co. (TSMC) CEO C.C. Wei revealed on Monday that the Taiwanese semiconductor giant plans to invest an additional $100 billion in the United States, constructing five more chip factories over the coming years.
The announcement was made during a meeting at the White House with US President Donald Trump. "We must be able to build the chips and semiconductors that we need right here," Trump stated. "It’s a matter of national security for us."
TSMC, the world’s largest contract chipmaker and a key supplier to major US tech companies, emphasized that this investment aims to enhance domestic semiconductor production, reducing reliance on Asian manufacturers. This latest commitment builds upon a previous expansion, in which TSMC agreed in April to increase its planned US investment by $25 billion—bringing the total to $65 billion—and to open a third factory in Arizona by 2030.
Following his re-election victory on November 5, largely driven by economic concerns, Trump has intensified efforts to attract investments into domestic industries to create jobs. The TSMC expansion aligns with similar recent pledges, including Apple’s announcement of a $500 billion investment over the next four years, and significant commitments from Emirati billionaire Hussain Sajwani and SoftBank.
Driving the news
On Monday, TSMC reaffirmed its commitment to fostering innovation and growth in the semiconductor industry, stating it looks "forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers."
Under the previous administration, the US Commerce Department, led by then-President Joe Biden, finalized a $6.6 billion government subsidy in November for TSMC’s US division to support semiconductor production in Phoenix, Arizona. Biden signed the CHIPS and Science Act in 2022, allocating $52.7 billion in subsidies for US semiconductor manufacturing and research.
A TSMC spokesperson confirmed last month that the company had received $1.5 billion in CHIPS Act funding before the new administration took office, in accordance with its agreement milestones.
Additionally, TSMC had agreed last year to produce the world’s most advanced 2-nanometer technology at its second Arizona facility, slated to begin production in 2028. The company also committed to manufacturing cutting-edge "A16" chips in Arizona, further solidifying its role in advancing US semiconductor capabilities.
Currently, TSMC has already begun producing four-nanometer chips for American clients in its Arizona plants. As part of its latest US investment package, the company secured up to $5 billion in low-cost government loans.
Read more: Taiwan 'stole our chip business', 'should pay for defense': Trump
