Taiwanese semiconductor giant TSMC has pledged a $100 billion investment to build five new chip fabrication facilities in the United States, according to former US President Donald Trump.
The announcement was made on Monday alongside CC Wei, the company’s chief executive, and is expected to boost domestic chip production while creating thousands of jobs in the high-tech sector.
The move is seen as a major step in strengthening the US semiconductor industry, reducing reliance on imported chips, and reinforcing national security in critical technology supply chains.
TSMC, the world’s largest contract chip manufacturer and a key supplier for US firms like Nvidia, already operates facilities in Arizona, where the new investments will be concentrated.
A Strategic Shift in Semiconductor Production
According to Trump, TSMC’s investment aligns with efforts to expand advanced chip manufacturing within the US. Speaking about the announcement, he emphasised the importance of domestic production, stating:
“We must be able to build the chips and semiconductors that we need right here in American factories, with American skill and American labour.”
TSMC’s latest commitment builds on its existing investments in Arizona, bringing its total semiconductor expenditure in the US to $165 billion. The company has already commenced operations on some of these projects, which are expected to generate around 40,000 construction jobs over the next four years.
While no detailed timeline for the new facilities was disclosed, the investment underscores the growing importance of localised chip production.
The global semiconductor industry has faced significant disruptions in recent years, from pandemic-induced shortages to geopolitical tensions, prompting governments and corporations to seek greater supply chain resilience.
Implications for the US Tech Sector and Intel’s Future
Beyond job creation, TSMC’s investment could have broader implications for the US semiconductor landscape, particularly for Intel, one of its struggling American counterparts.
According to Trump administration officials, discussions have taken place about TSMC potentially taking a stake in Intel’s manufacturing division, a move that could reshape competition in the sector.
TSMC, however, has remained cautious in its response, stating only that it looks forward to discussing ways to bolster the technology industry. Meanwhile, the investment announcement follows other major commitments from tech companies, including Apple’s recent pledge to invest $500 billion in the US over the next four years.
Despite the scale of the announcement, shares in TSMC fell by 2% in early trading on Tuesday, reflecting investor uncertainty over the long-term impact of these projects.
However, with semiconductor demand projected to remain strong, the US is positioning itself as a key player in the future of chip manufacturing, reducing its dependence on overseas production.
