Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, announced plans to invest $100 billion in the United States, marking a significant expansion of its operations. This investment is in addition to the $65 billion it had previously announced.
The announcement was made at the White House by U.S. President Donald Trump, accompanied by TSMC’s CEO, C.C. Wei, and White House AI and Crypto Czar David Sacks. “It’s going to create thousands of high-paying jobs … We are going to produce many chips to support AI’s progress and to support the smartphone’s progress,” Wei said.
While TSMC already produces chips for Apple to Nvidia, this expansion is a clear signal that the U.S. is doubling down on securing its tech future. However, the decision has raised concerns at home about what Taiwan would gain from moving some of its most advanced manufacturing processes to the U.S.
Key Takeaways
- TSMC is investing $100 billion in U.S. manufacturing, expanding its operations in Arizona.
- The move includes building three new fabs, two packaging facilities, and a major R&D team center.
- TSMC’s expanded investment will create tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D.
- The U.S. plants will focus on producing 4-nanometer chips, a step forward in advanced semiconductor manufacturing.
- TSMC’s decision raises questions in Taiwan over its semiconductor dominance and national security.
Why it matters
TSMC’s $100 billion U.S. investment marks a pivotal moment in the semiconductor industry, driven by both economic ambition and geopolitical strategy. While the move strengthens America’s tech manufacturing capabilities, it also sparks critical questions about Taiwan’s future role in the global supply chain and the implications for its national security since the industry is crucial to the island’s economy and national security. This move will likely influence global chip production, technology innovation, and U.S.-China relations—making it a crucial development for the tech community.
Trump hails ‘historic’ TSMC deal
This $100 billion investment, in addition to TSMC’s previous commitments, brings the company’s total U.S. investment to $165 billion. The company aims to manufacture chips for high-tech industries, including AI, automotive technology, and more. The U.S. plants will focus on producing 4-nanometer chips, a step forward in advanced semiconductor manufacturing.
In his remarks, President Donald Trump underscored the growing geopolitical and economic importance of semiconductor manufacturing. “This is a tremendous move by the most powerful company in the world. It’s a matter of economic security, it’s also a matter of national security for us,” Trump said.
“The U.S. cannot rely on other nations for its semiconductor needs. Without semiconductors, there is no economy,” Trump declared. “Powering everything from AI to automobiles to advanced manufacturing, we must be able to build the chips and semiconductors that we need right here in American factories with American skill and American labor.” The investment is seen as an attempt to reduce U.S. reliance on Taiwan, where TSMC produces the most advanced chips in the world, and to counter China’s growing influence in the tech space.
TSMC says investment driven by demand, not politics
Amid growing local pressure, Taiwanese President Lai Ching-te and TSMC’s Wei held a press conference to address concerns over the company’s $100 billion U.S. investment. Lai called the deal a “historic moment” in U.S.-Taiwan relations, assuring citizens it would not undermine TSMC’s domestic operations.
Both Lai and Wei emphasized that the deal was driven solely by rising U.S. customer demand, not political pressure, and avoided questions about tariffs or the security of Taiwan’s silicon shield. TSMC’s CEO C.C. Wei clarified that it is customer demand, not political pressures, that pushed the company to expand its chip investment in the U.S. The latest investment plan aims to meet strong demand from U.S. customers, Wei said.
Despite these reassurances, Trump’s response was blunt. He earlier stated that the investment would help TSMC avoid 25% tariffs on chips made in Taiwan, part of broader efforts to boost U.S. manufacturing and assert trade dominance.
Investment stirs concerns in Taiwan
While many in the U.S. view TSMC’s $100 billion investment as a major win for national security and technological innovation, the deal has triggered a wave of concerns in Taiwan. TSMC’s role as Taiwan’s economic linchpin—often referred to as the “silicon shield”—has been crucial in deterring Chinese aggression. Taiwan’s semiconductor dominance is seen as a strategic asset, with the U.S. and its allies relying on the island’s tech to stay ahead of global competitors, particularly China.
Opposition legislators are questioning what Taiwan stands to gain when its most advanced manufacturing processes are moved overseas. “The more TSMC produces in the U.S., the lower Taiwan’s geopolitical importance will be,” said Ko Ju-Chun, a legislator from Taiwan’s opposition Nationalist Party.
Despite TSMC’s reassurances that its most cutting-edge technology will remain in Taiwan, critics argue that the U.S. investment could eventually weaken Taiwan’s leverage on the global stage. As TSMC strengthens its U.S. operations, Taiwan’s semiconductor industry could become more vulnerable to shifts in global power dynamics.
Joyce Yen, a Taiwanese writer, cautioned that Trump’s focus on boosting U.S. manufacturing might signal a shift away from Taiwan’s geopolitical security. “The focus is on U.S. manufacturing power, not Taiwan’s security,” Yen remarked.
Taiwanese officials, including President Lai Ching-te, have defended TSMC’s decision, arguing that the investment is essential for the company’s future competitiveness. They’ve also promised that Taiwan will retain its most advanced semiconductor technologies. “We’ve seen time and again that with each initiative by TSMC, it has grown even stronger,” said Lai.
What’s next?
Modern chips, packed with billions of transistors on tiny slices of silicon, are driving groundbreaking innovations in AI, medical devices, communications, defense, autonomous vehicles, and IoT. In 2024, the global semiconductor market surpassed $600 billion, with Taiwanese foundries controlling more than 60% of the market. The industry reached a record $627.6 billion in sales, according to the Semiconductor Industry Association (SIA).
As the U.S. seeks to triple its semiconductor manufacturing capacity by 2032, TSMC’s $100 billion investment signals a pivotal moment. The outcome of this expansion will impact both America’s tech ecosystem and Taiwan’s strategic role in the global semiconductor industry. This move could either solidify Taiwan’s tech leadership or shift the global balance of power in semiconductor production.
Top 10 semiconductor companies
According to Statista report, these are the leading semiconductor companies worldwide as of March 3, 2025:
- Nvidia (U.S.)
- TSMC (Taiwan)
- Broadcom (U.S)
- ASML (Netherlands)
- Samsung (South Korea)
- Texas Instruments (U.S)
- Qualcomm (U.S)
- AMD (U.S)
- Arm Holdings (UK)
- Applied Materials (U.S)
