US President Donald Trump Announces $100 Billion Investment by Taiwan Semiconductor Manufacturing Co (TSMC) in the United States
US President Donald Trump revealed that Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest semiconductor manufacturer, plans to invest an additional $100 billion in the United States. This comes on top of the $65 billion the company had previously announced. TSMC, which produces chips for major tech giants like Apple, Intel, and Nvidia, has already begun constructing three factories in Arizona. The move follows the Biden administration’s offer of billions of dollars in subsidies to bolster domestic chip production.
TSMC’s first Arizona factory has commenced production of its advanced 4-nanometer chips. During a White House appearance with TSMC’s CEO, Trump emphasized the critical role of semiconductors in the 21st-century economy. “Semiconductors are the backbone of the modern economy. Without them, there really is no economy. They power everything from AI to cars to advanced manufacturing. We must be able to build these chips and semiconductors here in American factories, with American skills and workers,” Trump stated.
The new investment will fund the construction of three additional chip manufacturing plants and two packaging facilities in Arizona. Combined with the earlier $65 billion commitment, the total $165 billion investment is expected to create thousands of high-paying jobs in the region.
Biden’s CHIPS and Science Act: A Push for Domestic Chip Production
In 2022, former President Joe Biden signed the $200 billion CHIPS and Science Act into law, aiming to revive semiconductor production in the United States. The initiative gained urgency following the COVID-19 pandemic, which exposed vulnerabilities in the global supply chain. During the pandemic, overseas chip factories—responsible for producing the majority of processors—shut down, leading to widespread disruptions. These included the closure of auto assembly lines and a surge in inflation.
Trump, however, criticized the CHIPS Act and proposed a different strategy. Instead of relying on federal incentives, he advocated for imposing high tariffs on imported chips to incentivize domestic production. Trump also argued that companies like TSMC do not require federal tax incentives to invest in the US.
Geopolitical Implications: Taiwan and China Tensions
When questioned about whether the new investment would mitigate the impact on the United States if China were to isolate or seize Taiwan, Trump responded cautiously. “I cannot say it would minimize the impact because such an event would obviously be catastrophic,” he said. Taiwan, an island that separated from mainland China in 1949 after a civil war, has long been a point of contention. Beijing claims sovereignty over Taiwan and has increasingly applied military and diplomatic pressure on its leaders.
Trump did not elaborate on whether the investment would provide additional security for Taiwan, which Beijing considers part of its territory. However, the move underscores the strategic importance of semiconductor production in the context of US-China relations and global economic stability.