WASHINGTON (AP) — Taiwan Semiconductor Manufacturing Co., one of the leading chip manufacturers globally, announced a significant investment of $100 billion in the United States. This allocation, in addition to the existing $65 billion previously committed, showcases the company’s dedication to expanding its presence in U.S. markets. The decision to invest in U.S. infrastructure aligns with President Donald Trump’s efforts to bolster the country’s semiconductor manufacturing sector.
President Trump, in a joint appearance with TSMC’s CEO C. C. Wei at the White House, applauded the investment as a move that enhances economic security. He emphasized the critical role that semiconductors play in powering various sectors of the economy, from AI to advanced manufacturing. With TSMC’s ongoing construction of three plants in Arizona, the first factory has already commenced mass production of 4-nanometer chips. Trump praised the initiative as pivotal for ensuring that essential components are produced domestically with American labor.
Wei disclosed that the $165 billion investment will facilitate the establishment of three new chip manufacturing plants and two packaging facilities in Arizona. The ambitious endeavor is projected to generate thousands of high-paying jobs, contributing significantly to the local economy. The investment comes on the heels of Former President Joe Biden’s signing of the $280 billion CHIPS and Science Act in 2022, aimed at revitalizing chip manufacturing in the U.S. post the challenges posed by the COVID-19 pandemic.
The disruptions in chip production during the pandemic underscored the vulnerabilities of relying on overseas suppliers, leading to broader economic repercussions. Trump has diverged from Biden’s approach by emphasizing the imposition of high tariffs on imported chips as a strategy to incentivize domestic manufacturing. Despite certain policy differences, both administrations recognize the importance of enhancing domestic chip production to safeguard national interests.
Addressing potential geopolitical implications, Trump acknowledged the strategic significance of securing a substantial portion of chip manufacturing within the U.S. He refrained from underscoring potential security arrangements with Taiwan but stressed the economic benefits of increased U.S.-Taiwan business collaboration. The island’s government remains optimistic about the expansion of Taiwanese investments in the U.S., fostering closer economic ties and supply chain cooperation between the two regions.
In a broader context, the investments by TSMC and other companies underscore the growing trend of major corporations pledging substantial funds for American expansion. Trump has leveraged such announcements to showcase his administration’s economic leadership, underscoring the benefits of his policies in attracting investments. The emphasis on incentivizing domestic manufacturing and infrastructure development aligns with his vision of bolstering the U.S. economy through strategic partnerships and initiatives.