The Taiwan Semiconductor Manufacturing Company (TSMC), a leading name in the chipmaking industry, has made headlines with its announcement of plans to invest at least $100 billion to enhance its manufacturing operations in the United States. This significant investment was revealed by former President Donald Trump during a press briefing at the White House, where he was joined by TSMC's CEO, C.C. Wei, along with Commerce Secretary Howard Lutnick and White House AI and Crypto Czar David Sacks.
This announcement aligns with Trump's broader initiative to stimulate investments in American manufacturing. The investment will fund the construction of two additional advanced chipmaking facilities in Arizona, supplementing the three existing plants that TSMC has already planned. Trump's remarks indicated that this move is expected to create tens of thousands of jobs, further bolstering the US economy. With this latest pledge, TSMC's total investments in the US now amount to approximately $165 billion.
"This is a tremendous move by the most powerful company in the world," Trump stated, emphasizing that the investment is not only crucial for economic stability but also for national security. He noted that it would help TSMC diversify its operations beyond Taiwan, reducing reliance on overseas manufacturing. The White House had hinted at this announcement earlier in the day, underscoring its significance in the context of global semiconductor supply chains.
As the world’s largest semiconductor manufacturer, TSMC plays a pivotal role in powering a wide array of technology products, including smartphones, AI systems, vehicles, and medical devices. This investment comes at a critical time when the United States is striving to strengthen its position in the global chipmaking industry and maintain a competitive edge over China in the race for AI development. Trump claimed that TSMC's investment, along with other initiatives, could elevate the US's share of the global chip market to 40%, although such a target would likely require years to achieve.
During the announcement, C.C. Wei reiterated TSMC's commitment to supporting advancements in AI and technology, stating, "We’re going to produce many chips to support AI progress and to support smartphone progress." He also expressed gratitude to TSMC's customers, which include tech giants like Apple, Nvidia, AMD, and Qualcomm. An Nvidia spokesperson highlighted that "TSMC’s new fabs will be the foundational pillar of a new technology supply chain centered in the United States," emphasizing the importance of TSMC's global manufacturing network in enhancing supply chain resilience.
TSMC’s commitment is part of a larger trend among technology companies pledging substantial investments in the United States. Recently, Apple announced plans to invest $500 billion to expand its facilities and manufacturing capabilities over the next four years, a move likely aimed at sidestepping potential tariffs on imports from China. Other tech leaders, including Oracle, OpenAI, and SoftBank, have also revealed plans to collaborate on a new venture called Stargate, aiming to bolster AI infrastructure in the US with a combined investment of $500 billion.
Initially, TSMC announced a $12 billion investment in 2020 to establish an advanced semiconductor factory in Arizona, motivated by growing concerns over America's dependency on Asian chipmakers for national security. The company’s efforts gained further momentum under President Joe Biden, following the introduction of the CHIPS and Science Act, which provided funding to boost American chip production. As part of its expanded efforts, TSMC committed to building two additional plants in Arizona, increasing its investment in the state to $65 billion, although some projects have encountered delays.
Historically, US presidents have made joint announcements with companies regarding significant investments in manufacturing, but their success rates have varied. For instance, Trump and Foxconn announced a $10 billion electronics factory in Wisconsin in 2017, projected to create 13,000 jobs. However, the plan was scaled back, and Foxconn later invested only $672 million, resulting in far fewer jobs than anticipated. Despite this, Foxconn has maintained a significant manufacturing presence in the state, focusing on data servers and AI training initiatives.
As TSMC moves forward with its ambitious plans, the commitment to invest in US manufacturing signifies a pivotal shift in the tech landscape, aiming to enhance the country’s competitiveness in the global semiconductor market.
This article has been updated with additional developments and context, with contributions from CNN's Alayna Treene.
