TSMC and Trump announce $100 billion plan for five new chip factories in the US, addressing semiconductor reliance and national security.

In Short

TSMC will invest $100 billion in the US to build five new chip facilities, aiming to reduce reliance on Asian production amidst rising tensions over Taiwan. This expansion, supported by the CHIPS and Science Act, is set to create 40,000 jobs and reaffirms TSMC’s commitment to advanced chip production while navigating geopolitical challenges.

Taiwan Semiconductor Manufacturing Company (TSMC) has announced a $100 billion investment in the United States to build five new chip facilities. This decision was revealed by TSMC’s CEO, C.C. Wei, during a meeting with President Donald Trump at the White House.

The investment aims to decrease reliance on Asian semiconductor production amid rising tensions over Taiwan, a major chip producer. The expansion includes three new fabrication plants, two packaging facilities, and a significant research centre.

This initiative follows an increase in planned U.S. investment by TSMC, which aims to create 40,000 construction jobs over four years.

TSMC faced delays on its first Arizona plant, and production is expected to begin in 2024.

Nvidia impact

The company’s increased costs are a concern, particularly as it partners with major firms like Nvidia and Qualcomm. The announcement aligns with Trump’s campaign promise to support domestic industries and create jobs.

Taiwan’s government will review the overseas investment as per local laws, viewing it as beneficial for Taiwan’s competitiveness.

The announcement highlights TSMC’s commitment to maintaining advanced chip production in Taiwan while expanding in the U.S.