Trump administration, TSMC unveil $100 billion U.S. expansion plan for new chip facilities
Reuters
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.
19:30
Officials react
Officials react to Trump's pause on military aid to Ukraine
U.S. President Donald Trump has paused military aid to Ukraine following his clash with Ukrainian President Volodymyr Zelenskiy last week, prompting a wide range of responses from officials across Ukraine, Russia, Europe, and the United States.
16:53
funding
Trump says federal funding will stop for colleges, schools allowing 'illegal' protests
President Donald Trump said on Tuesday that all federal funding will stop for colleges and schools that allow "illegal" protests and that agitators will be imprisoned or sent back to the country they came from.
22:45
Kremlin
Kremlin says someone needs to force Zelenskyy to make peace after clash with Trump
The Kremlin said on Monday that someone would have to force Volodymyr Zelenskyy to make peace and that the Ukrainian leader's public clash with U.S. President Donald Trump had shown just how hard it would be to find a way to end the war.
20:00
Trump
Trump names cryptocurrencies for U.S. srategic reserve, market reacts
U.S. President Donald Trump announced on social media that five digital assets will be included in a new U.S. strategic reserve of cryptocurrencies, a move that spurred a significant surge in market values.
What is your opinion on this topic?
Leave the first comment