Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has announced a major investment of $100 billion to expand its manufacturing capabilities in the United States.
This new venture comes on top of TSMC’s previously announced $65 billion investment, underscoring the company’s pivotal role in the global semiconductor industry and its commitment to meeting growing demand for advanced technology.
The $100 billion investment will fund the construction of three new chip manufacturing plants and two packaging facilities in Arizona, which will significantly bolster TSMC’s presence in the U.S.
The announcement was made during a joint press conference on March 3, 2025, with U.S. President Donald Trump and TSMC CEO C.C. Wei at the White House. Trump called it a “tremendous move” and “a matter of economic security.”
“Semiconductors are the backbone of the 21st century economy,” Trump said. “Without semiconductors, there is no economy. Powering everything from AI to automobiles to advanced manufacturing, we must be able to build the chips and semiconductors that we need right here in American factories with American skill and American labor.”
The move to expand operations in the United States has been heavily influenced by the increasing global demand for advanced semiconductors, essential components for everything from artificial intelligence (AI) to automobiles and advanced manufacturing. TSMC’s expansion plan aims to address this demand, with President Trump praising the company’s efforts as a critical step in securing the United States’ technological future.
TSMC’s commitment to building a strong manufacturing base in the U.S. is seen as both an economic and strategic move. The $165 billion investment “is going to create thousands of high-paying jobs,” Wei said. He added the investment will be for three more chip manufacturing plants, along with two packaging facilities, in Arizona.
Reactions and concerns from Taiwan
While the announcement was celebrated by many in the U.S. as a sign of economic and technological progress, it has sparked mixed reactions in Taiwan. TSMC, which is headquartered in Taiwan, has long been viewed as a key pillar of the island’s economy and its defense against potential aggression from China, which claims Taiwan as part of its territory.
The Taiwanese government has tried to reassure the public, emphasizing that TSMC’s decision was not driven by political pressure from the United States. President Lai Ching-te of Taiwan clarified that the expansion was a result of customer demand, not coercion from the U.S. government.
“TSMC’s decision is necessary for its future development. The government did not face pressure from the United States during TSMC’s investment process in the U.S.,” President Lai said in a press briefing. “We have seen every time that with each initiative by TSMC, the company has grown stronger and more competitive, which also benefits Taiwan’s businesses and contributes to Taiwan’s greater strength.”
TSMC CEO C.C. Wei emphasized that the company’s decision to expand in the U.S. was driven by business needs, particularly to meet growing customer demand. He reassured that Taiwan’s production would not be impacted by the U.S. investment. Despite expanding internationally, TSMC has maintained that its most advanced factories and chip production remain in Taiwan.
However, some in Taiwan, are not convinced. “When TSMC invests so much capital and takes its most advanced manufacturing processes to the United States, what has Taiwan gained in return?” Wang Hung-wei, a legislator from Taiwan’s opposition Nationalist Party, said at a news conference this week.
TSMC’s $165 billion investment
TSMC’s continued expansion into the U.S. is part of a larger trend of diversifying semiconductor production outside of Asia. While the investment strengthens TSMC’s foothold in the U.S., it also offers Taiwan the opportunity to enhance its international standing.
TSMC’s new $100 billion commitment, combined with its earlier $65 billion investment in U.S. operations, brings the total to $165 billion. This substantial financial outlay will help TSMC address the rapidly growing demand for semiconductors, especially in the AI and high-tech sectors. With three new factories, two packaging facilities, and an R&D center on the way, TSMC’s U.S. footprint will significantly expand over the next few years.