Taiwan Semiconductor Manufacturing on Monday pledged to invest at least $100 billion more in U.S. chip manufacturing plants over the next several years. But TSM stock fell amid a broad sell-off of chip stocks.
The announcement came after a meeting at the White House between President Donald Trump and Taiwan Semiconductor Chief Executive C.C. Wei.
The world's largest chip foundry, better known as TSMC, plans to use the funds to add to its chip manufacturing facilities in Arizona. The company will construct three new chip plants, two chip-packaging plants and a research and development center, the Wall Street Journal reported.
With its new investments, TSMC is planning to spend a total of $165 billion on its U.S. factories, the Journal said.
The news supports a Trump administration goal of bringing more manufacturing back to the U.S. Since taking office, Trump has secured nearly $2 trillion in U.S.-based investment, according to a White House news release.
TSM Stock Drops Despite Commitment
However, on the stock market today, TSM stock dropped 4.2% to close at 172.97.
The Philadelphia semiconductor index, known as SOX, fell 4% on Monday. The SOX includes the 30 largest semiconductor stocks traded in the U.S.
Elsewhere on Monday, Reuters reported that Nvidia and Broadcom are running manufacturing tests with Intel at its leading-edge fab. The tests indicate that the AI chip designers are moving closer to determining whether they will commit hundreds of millions of dollars' worth of manufacturing contracts to Intel, the report said.
Advanced Micro Devices also is evaluating whether Intel's 18A manufacturing process is suitable for its needs but it was unclear if it had sent test chips through the factory, Reuters said. Intel's 18A fab is located in Chandler, Ariz.
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