YEREVAN (CoinChapter.com) — Taiwan Semiconductor Manufacturing Co. (TSMC) will invest $100 billion in the United States, adding five new chip facilities. The Trump investment announcement was made at the White House, where TSMC CEO C.C. Wei met with Donald Trump.
The plan involves expanding domestic chip production to reduce dependence on Taiwan-made semiconductors. Trump stated,
“We must be able to build the chips and semiconductors that we need right here. It’s a matter of national security for us.”
New US Facilities Include Factories and Research Centers
The $100 billion investment includes three new fabrication plants, two advanced packaging facilities, and a research and development center. TSMC did not specify a completion date but said the expansion would create 40,000 construction jobs in four years.
In 2024, TSMC started chip production at its first Arizona plant after delays and higher costs. In April 2024, the company raised its US investment from $40 billion to $65 billion, adding a third Arizona factory set to open by 2030.
Stock Market Reaction and Cost Concerns
After the Trump investment announcement, TSMC shares fell 1.96%. Analysts pointed to higher costs in the US compared to Taiwan. Andrew Tsai, chairman of Capital Investment Management Corp., said,
“Higher costs are definitely a concern for TSMC.”
Despite cost concerns, TSMC remains a key supplier for Nvidia (NVDA.O), Qualcomm (QCOM.O), and Advanced Micro Devices (AMD.O). The investment will help secure the semiconductor supply chain for these companies.
Talks Between TSMC and Intel on Joint Venture
The Trump administration has been in discussions with TSMC about a joint venture with Intel (INTC.O). A source said that officials met C.C. Wei in New York to discuss a deal where multiple chip firms could take a stake in Intel’s factory unit.
Intel did not respond to inquiries. The Trump investment announcement aligns with efforts to expand domestic chip production.
CHIPS Act and Government Incentives for TSMC
The TSMC investment qualifies for a 25% manufacturing tax credit under the 2022 CHIPS and Science Act, which provides $52.7 billion in funding for US semiconductor production.
The US Commerce Department approved a $6.6 billion subsidy for TSMC’s Arizona facilities. Before the new administration, TSMC received $1.5 billion under the CHIPS Act.
Taiwan’s Response to TSMC’s Investment Shift
The Taiwanese government will review the TSMC investment for compliance with regulations on large overseas projects. The Taiwan Presidential Office stated that the decision must align with investor interests and Taiwan’s competitiveness.
Karen Kuo, a Presidential Office spokesperson, said,
“While TSMC expands its investment in the U.S., the most advanced processes will remain in Taiwan.”
The company did not confirm the chip technology for the new US plants.
In 2023, TSMC announced plans to manufacture 2-nanometer chips at its second Arizona facility, expected to start production in 2028. The company will also use A16 technology in the Arizona plants.
US Investments by Other Companies
The Trump investment announcement comes as several companies expand US investments. In February, Apple pledged $500 billion over four years. SoftBank and Emirati billionaire Hussain Sajwani also announced billion-dollar US investments.
Commerce Secretary Howard Lutnick said TSMC and other semiconductor firms are increasing US investments to avoid Trump’s new tariffs. He previously described the Biden-era CHIPS Act funding as “an excellent down payment” but did not commit to approving existing grants.
