TSMC announced a $100 billion investment in the U.S. to build five additional chip facilities, expanding its presence beyond previous commitments.
The investment includes three new chip fabrication plants, two advanced packaging facilities, and an R&D center, TSMC CEO C.C. Wei said.
US President Donald Trump, in a news statement, highlighted the move as a matter of national security, ensuring domestic semiconductor production.
Technology companies such as Apple, Nvidia, AMD, Qualcomm and Broadcom support TSMC’s manufacturing in the U.S.
The expansion builds on TSMC’s previous $65 billion commitment, which included adding a third Arizona factory by 2030.
TSMC’s investment will create 40,000 construction jobs over the next four years, though no timeline for the new plants was provided.
TSMC plays a crucial role in the U.S. semiconductor industry, supplying Nvidia, Qualcomm, and AMD while potentially aiding Intel’s factory unit.
The investment aligns with Trump’s campaign pledge to bolster domestic industries, alongside other major investments from Apple, SoftBank, and Emirati billionaire Hussain Sajwani.
TSMC’s expansion benefits from the CHIPS and Science Act, which offers subsidies and tax incentives for semiconductor production in the U.S.
The company has received $6.6 billion in government subsidies and $1.5 billion in CHIPS Act funding before the administration transition.
The $100 billion announced on Monday would be eligible for a 25 percent manufacturing investment tax credit under the 2022 law, Reuters news report said.
Concerns over Taiwan’s semiconductor dominance and China’s sovereignty claims have driven U.S. efforts to localize chip production.
TSMC plans to produce 2-nanometer chips in its second Arizona factory by 2028, using its most advanced manufacturing technology, “A16.”
TelecomLead.com News Desk
