President Donald Trump announced a significant investment by Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor manufacturer, on Monday (March 3). The company plans to invest $100 billion in the United States, primarily to build five manufacturing facilities in Arizona. This investment comes in addition to the $65 billion TSMC had previously committed to U.S. projects.
President Trump, alongside TSMC CEO C.C. Wei, emphasized the strategic importance of this investment for the U.S. economy. "Semiconductors are the backbone of the 21st-century economy," Trump stated, highlighting their critical role in powering technologies from AI to automobiles. The new facilities are expected to create thousands of high-paying jobs and reduce the country's reliance on foreign supply chains.
According to the Washington Post, TSMC has already started mass production of its 4-nanometer chips at its first Arizona factory. The new investment will include three additional chip manufacturing plants and two packaging facilities.
This announcement follows the 2022 CHIPS and Science Act, signed by former President Joe Biden, which aimed to boost domestic chip manufacturing. However, President Trump has taken a different approach, threatening high tariffs on imported chips to encourage local production.
The investment is seen as a move to strengthen U.S.-Taiwan relations amid rising tensions with China. Taiwan, which China claims as part of its territory, has been increasing its investments in the U.S. to solidify economic ties.