Taiwanese semiconductor giant TSMC (Taiwan Semiconductor Manufacturing Co.) has announced a massive $100 billion investment to build five state-of-the-art manufacturing facilities in the United States.
The announcement was made by former US President Donald Trump during a White House event, alongside TSMC’s CEO, C.C. Wei. The majority of this investment will be directed toward Arizona, aiming to strengthen the US semiconductor industry and create thousands of high-paying jobs.
TSMC’s Investment Plans in the US
TSMC, the world’s largest chipmaker, has committed this funding to expand its presence in the US. The investment will be utilized for:
- Three new semiconductor fabrication plants.
- Two advanced packaging facilities.
- A major research and development (R&D) center.
The company has stated that this expansion will support approximately 40,000 construction jobs over the next four years.
Reasons Behind the Expansion
This move comes amid growing concerns that tensions between Taiwan and China could disrupt the global semiconductor supply chain. Many countries, including the US, have been urging TSMC to relocate some of its production to ensure a stable supply of chips.
Additionally, Trump has threatened to impose a 25% tariff on all semiconductor chips manufactured outside the US, further encouraging companies to shift production to American soil.
Previous Commitments and Total Investment
This investment is separate from the $65 billion TSMC had already pledged under former President Joe Biden’s administration to build three factories in Arizona. However, only one of these factories has begun production as of late 2024.
With this latest commitment, TSMC’s total investment in the US reaches approximately $165 billion.
Taiwan’s Key Role in the Global Chip Industry
Despite these expansions in the US, TSMC CEO C.C. Wei emphasized that Taiwan remains a crucial part of the global semiconductor supply chain. The country’s semiconductor dominance acts as a “silicon shield”—a strategic advantage that could help deter potential threats from China.
China has long claimed Taiwan as part of its territory, raising concerns about possible military action. Maintaining Taiwan’s semiconductor industry is seen as a way to safeguard its economic and geopolitical standing.
TSMC’s decision to invest $100 billion in the US marks a significant step in reshaping the global semiconductor industry. While this move helps strengthen the US’s domestic chip-making capabilities, it also highlights the strategic importance of Taiwan in the global supply chain. With geopolitical tensions rising, semiconductor manufacturing is becoming more than just an industry—it’s a key factor in international security and economic stability.
