President Donald Trump, joined by Taiwan Semiconductor Manufacturing Company (TSMC) CEO C.C. Wei, said on Monday that the chip behemoth will invest another $100 billion in American manufacturing plants. The White House announcement represents a major expansion of TSMC's footprint in the United States.
"This investment will create hundreds of billions of dollars in economic activity and solidify America's leadership in artificial intelligence and beyond," Trump said at the press conference. He also pointed out that the expansion would add 20,000 to 25,000 new jobs.
This latest commitment builds on TSMC’s previously announced $65 billion investment in its Arizona operations, bringing the company’s total U.S. investment to a staggering $165 billion. TSMC has described this as "the largest single foreign direct investment in U.S. history."
In the next four years, the company intends to build three more chip-making facilities in addition to the three in progress. It will also open two advanced packaging facilities and a research center in its Arizona campus.
TSMC broke history in late 2024 by commencing mass production of 4-nanometer chips at its initial Arizona factory, the first time such sophisticated semiconductors have been produced in the U.S. The plant, located on a massive 1,100-acre campus, now has over 3,000 employees.
Looking to the future, TSMC assured that its U.S. plants will specialize in manufacturing cutting-edge semiconductors, including next-generation 2-nanometer chips. These next-generation processors will be essential for uses like artificial intelligence, high-performance computing, cryptocurrency mining, and other critical technologies.
Trump emphasized the role of semiconductors in today's economy, saying, "Semiconductors are the backbone of the 21st-century economy. Without them, industries from AI to automotive manufacturing simply cannot function."
The development follows growing technology rivalry between China and the U.S., where semiconductors are growing to be important for national security and economic resiliency. TSMC's increased investment also marks a strategic shift, possibly protecting the company from disturbance linked to tension between the two countries while entrenching itself in the US market.
In spite of the blockbuster revelation, TSMC's share dipped 4.2% to $172.90 on Monday—losing steam compared with tech-heavy Nasdaq 100, which sank 2.2% to 20,425. Separately, Nvidia declined by an intra-day record of 8.7%, hitting $114.06, on fears related to tariffs for unleashing a pan-sector AI-selling frenzy.
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