President Donald Trump is set to announce that Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest $100 billion in the United States. TSMC, the world's largest semiconductor manufacturer, already produces chips for major companies like Apple, Intel, and Nvidia. The company had previously revealed intentions to invest over $65 billion in the U.S., including establishing three plants in Arizona with the support of subsidies from the Biden administration. The first Arizona factory has commenced mass production of 4-nanometer chips.
It remains unclear whether the newly announced $100 billion investment includes the previously disclosed $65 billion. TSMC's CEO is scheduled to meet with President Trump to discuss these plans. Last month, TSMC held its board meeting in the U.S. but did not make any formal announcements regarding expanded investments.
Former President Joe Biden signed the CHIPS and Science Act in 2022, a $280 billion law aimed at revitalizing chip manufacturing in the U.S., particularly in the wake of disruptions caused by the COVID-19 pandemic. The pandemic led to the shutdown of chip factories worldwide, resulting in broader repercussions such as halting automobile assembly lines and contributing to inflation.
While Biden's approach involves significant government support, Trump has criticized the law and advocated for imposing high tariffs on imported chips to encourage domestic manufacturing. Trump has also expressed the belief that companies like TSMC do not require federal tax incentives.
Throughout his presidency, Trump has highlighted various business investments as evidence of his positive impact on the U.S. economy. Notably, he recently met with Apple CEO Tim Cook, leading to Apple's commitment to invest over $500 billion in the U.S. over the next four years, including plans for a new server factory in Texas. Trump stated that Cook assured him of shifting Apple's manufacturing operations from Mexico to the U.S.
The Wall Street Journal initially reported the upcoming announcement regarding TSMC's substantial investment in the U.S.
