In a joint announcement at the White House on Monday, Taiwan Semiconductor Manufacturing Company (TSMC) and President Donald Trump revealed plans for a $100 billion investment to build five new semiconductor facilities in the United States.
The initiative is part of a broader strategy to strengthen domestic semiconductor production and reduce reliance on chips manufactured in Asia—a concern amplified by global supply chain challenges and ongoing geopolitical tensions. “We must be able to build the chips and semiconductors that we need right here. It’s a matter of national security for us,” President Trump stated during the announcement.
TSMC’s CEO, C.C. Wei, outlined that the investment, which follows previous announcements of increased U.S. investment plans, is expected to create approximately 40,000 construction jobs over the next four years. While the company did not specify exact timeframes for the new facilities, it emphasized that the expanded operations would further solidify its role as a key supplier to major U.S. hardware manufacturers.
The announcement comes amid ongoing concerns over higher production costs in the United States compared to TSMC’s established facilities in Taiwan. Industry analysts note that while the investment promises long-term benefits in terms of supply chain security and job creation, the elevated costs could present short-term challenges for the company.
The move also aligns with U.S. legislative efforts to boost domestic semiconductor manufacturing. Under the CHIPS and Science Act, investments such as TSMC’s are eligible for a 25% manufacturing investment tax credit. This support builds on earlier U.S. government measures, including a $6.6 billion subsidy secured last year for TSMC’s operations in Arizona.
In related developments, TSMC’s Taiwan-listed shares experienced a 2% decline following the announcement. The company’s expansion is seen as a critical factor for the U.S. chip industry, especially as global semiconductor supply chains face increased scrutiny and efforts to diversify production locations intensify.
Taiwan’s government will review the planned investment under its regulatory framework, which requires approval for large overseas investments, though officials have indicated that such initiatives are viewed positively for enhancing Taiwan’s overall competitiveness.
As TSMC prepares to further integrate its production with U.S. operations, the semiconductor industry and policymakers alike will be closely monitoring the rollout of these new facilities and their impact on both domestic manufacturing and global supply chains.
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