TSMC to Invest $100 Billion in U.S. Chip Manufacturing, Expanding Arizona Hub
Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to invest $100 billion in U.S.-based chip production, CEO C.C. Wei said alongside President Donald Trump on Monday. The investment will fund the construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center at the company’s Arizona complex, bringing its total planned investment in the site to $165 billion.Speaking at a televised press conference, Trump emphasized the importance of domestic semiconductor production. “The most powerful AI chips in the world will be made right here in America,” he said. “It’s a matter of economic security, and it’s also a matter of national security.”
TSMC, the world’s largest semiconductor manufacturer, plays a crucial role in the global chip supply chain. The expansion aligns with the Trump administration’s goal of bolstering domestic AI chip production and reducing reliance on foreign manufacturers. Trump also reiterated plans to impose 25% tariffs or higher on semiconductor imports starting April 2, with tariffs on goods from Canada and Mexico taking effect Tuesday.
The first factory at TSMC’s Arizona facility began production in late 2024 and was recently in discussions to manufacture Nvidia’s (NVDA) next-generation Blackwell chips. The two additional plants currently under construction are expected to be operational by 2028 and the end of the decade, according to the company.
TSMC’s U.S. expansion was bolstered by $6.6 billion in federal funding awarded in 2024 through the CHIPS and Science Act, a 2022 initiative spearheaded under the Biden administration that allocated more than $50 billion to support domestic semiconductor research and manufacturing.
Despite the major investment, TSMC’s U.S.-listed shares fell 4% on Monday, as broader concerns over tariffs and potential chip export restrictions weighed on AI and semiconductor stocks, including Nvidia.