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Taiwan Semiconductor Manufacturing Co, a leading player in the semiconductor industry, has announced its intention to invest $100 billion in the United States and establish five additional manufacturing facilities in the upcoming years.
During a meeting at the White House with former President Donald Trump, TSMC’s CEO, CC Wei, revealed this ambitious plan. Trump emphasized the importance of domestic semiconductor production, stating, “We must be able to build the chips and semiconductors that we need right here. It’s a matter of national security for us.” TSMC, recognized as the largest contract chipmaker globally, supplies major American companies such as Apple, Intel, and Nvidia.
This $100 billion investment aims to enhance domestic semiconductor production and reduce the United States’ dependence on Asian-made chips. This announcement follows a previous commitment made by TSMC in April, where the company agreed to increase its planned investment in the U.S. from $40 billion to $65 billion, which includes the construction of a third factory in Arizona by 2030.
In 2022, former President Joe Biden enacted the CHIPS and Science Act, a comprehensive $280 billion legislation designed to revitalize semiconductor manufacturing in the United States, particularly in the wake of the COVID-19 pandemic. This legislation also included a subsidy for TSMC’s operations in Phoenix, Arizona.
During the pandemic, many chip manufacturing facilities, particularly those located abroad that produce the majority of processors, were forced to close. This situation created a cascading effect, resulting in significant challenges, including the halting of automobile assembly lines and contributing to rising inflation.
Trump has expressed his disapproval of the current legislation and has proposed an alternative strategy, which includes the imposition of high tariffs on imported chips to encourage domestic chip production.
He has also stated that companies such as TSMC do not require federal tax incentives. Since taking office in January, Trump has welcomed numerous business leaders to the White House to promote a range of investments that he claims will benefit the US economy.
In February, Apple announced plans to invest $500 billion over the next four years. Additionally, Emirati billionaire Hussain Sajwani and SoftBank have pledged substantial investments in the United States.
On Monday, TSMC expressed its eagerness to engage in discussions regarding a shared vision for innovation and growth within the semiconductor industry, as well as to explore opportunities to strengthen the technology sector alongside its customers.
Under the Biden administration, the US Department of Commerce successfully persuaded all five leading-edge semiconductor companies to establish manufacturing facilities in the United States as part of a strategy to mitigate national security risks associated with imported chips.
Trump’s former Commerce Secretary, Howard Lutnick, informed lawmakers last month that this initiative represents a significant initial investment in revitalizing the sector. However, he has refrained from committing to grants that have already been approved by the department, indicating a desire to review and analyze them thoroughly.
