TSMC has announced a $100 billion investment in the United States, a move set to reshape the country’s semiconductor landscape. Standing alongside former President Donald Trump at the White House, TSMC CEO C.C. Wei revealed that the investment will fund the construction of three fabrication plants, two packaging facilities, and a research and development center in Arizona.

Trump emphasized that the most powerful AI chips in the world will now be manufactured in the US, reinforcing the nation’s push for technological and economic security. This new commitment adds to TSMC’s existing $65 billion investment in its 4nm chipfabs, further solidifying its foothold in the US.

The Arizona expansion is expected to generate more than 20,000 jobs in and around the facilities. According to TSMC’s press release, the project will support 40,000 construction jobs over the next four years and create thousands of high-paying roles in advanced chip manufacturing and research.

While specific details about the chip nodes or production capacity were not disclosed, Wei mentioned key customers such as Apple, AMD, Nvidia, and Qualcomm companies likely to benefit from having a closer supply chain.

Trump linked the investment to broader economic and national security goals, stressing the importance of producing advanced semiconductors domestically. Although the CHIPS and Science Act under the Biden administration provided initial momentum for TSMC’s US expansion, US Commerce Secretary Howard Lutnick suggested that Trump’s tariffs played a significant role in the company’s decision to shift some of its production away from Taiwan.

This strategic move also allows TSMC to diversify its manufacturing base, reducing risks associated with Taiwan's frequent natural disasters and ongoing geopolitical tensions with China. Establishing fabs in the US not only strengthens TSMC's supply chain but also brings production closer to its major clients.

However, the expansion may stir concerns among competitors. Intel, already grappling with financial struggles in late 2024, now faces the reality of TSMC producing chips on US soil with massive investment and future commitments. Adding to the competitive pressure, the Taiwanese government has given TSMC the green light to produce its cutting-edge 2nm chips abroad, likely at the upcoming Arizona facilities.

As TSMC ramps up its US presence, the ripple effects on the global semiconductor industry, from job creation to supply chain shifts, are bound to unfold. This bold $100 billion move not only reinforces America's role in AI chip innovation but also positions TSMC as a dominant player in the world’s semiconductor future.

PHOTO: GETTY IMAGE/Andrew Harnik

This article was created with AI assistance.