TSMC to Invest $100 Billion in Expanding US Chip Manufacturing

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, has announced a $100 billion investment to expand its manufacturing capabilities in the United States. This plan includes building two new chip factories in Phoenix, Arizona, in addition to the three previously announced. The investment adds to the $65 billion TSMC had already committed and is further supported by a $6.6 billion grant from the Biden administration under the CHIPS Act. The new facilities are expected to produce advanced 2-nanometer chips or even more sophisticated technology by the end of the decade. TSMC’s first Arizona plant began manufacturing 4-nanometer chips in January. CEO C.C. Wei highlighted that the expansion would create thousands of high-paying jobs and focus significantly on AI chip production. President Donald Trump, during a press conference, linked the investment to potential tariffs on semiconductors and other goods, set to be introduced as early as April. The move comes as part of broader efforts to boost domestic chip production and reduce reliance on foreign manufacturers. The announcement aligns with Apple’s recent disclosure of a $500 billion investment in the US over the next four years, including a server factory in Texas.