TSMC Invests $100 Billion in US Chip Manufacturing, Aiming to Create 20,000 Jobs

On Monday, President Donald Trump announced, alongside TSMC CEO C.C. Wei, that the Taiwan Semiconductor Manufacturing Company (TSMC) is committing an additional $100 billion to expand its manufacturing facilities in the United States.

"This investment will drive hundreds of billions of dollars in economic activity and reinforce America’s leadership in technology, especially artificial intelligence and beyond," Trump said at a press conference. He noted that this expansion is expected to create between 20,000 to 25,000 jobs.

The latest funding builds upon TSMC's earlier commitment of $65 billion for operations in Arizona, making it "the largest single foreign direct investment in U.S. history," totaling around $165 billion.

In the coming four years, TSMC plans to construct three new chip fabrication plants alongside the three already in progress. Additionally, the company will establish two advanced packaging facilities and a research center at its Arizona site.

TSMC commenced high-volume production of 4-nanometer chips at its first Arizona facility in late 2024. This event marks a significant milestone as it is the first instance of chips of this caliber being manufactured on U.S. soil. The Arizona facility currently employs over 3,000 workers across its sprawling 1,100 acres.

The future plants will produce state-of-the-art chips, including upcoming 2-nanometer semiconductors, which are essential for next-generation AI applications as well as mobile computing and cryptocurrency mining, among other crucial technologies.

Trump emphasized the importance of semiconductors, stating, "Semiconductors are the backbone of the 21st century economy. Without them, there is no economy, powering everything from AI to automobiles and advanced manufacturing."

This strategic move comes at a time when U.S.-China technological competition is heating up, indicating that semiconductors are now recognized as vital infrastructure for national security and economic health.

TSMC’s investment also appears to be a strategic adjustment, aiming to shield the company from potential disruptions arising from U.S.-China tensions while strengthening its foothold in the crucial U.S. market.

However, TSMC’s stock saw a decline of 4.2% to $172.90 on Monday, which was underperforming compared to a 2.2% drop in the tech-heavy Nasdaq 100 index, which settled at 20,425.

Similarly, Nvidia, another leading chip manufacturer, witnessed a drop of 8.7% to $114.06 that day, as the overall AI sector faced a slump fueled by concerns regarding tariffs, impacting investor confidence.

Edited by Sebastian SinclairTSMC, investment, jobs