TSMC Commits $100 Billion to Expand U.S. Semiconductor Manufacturing
By The Chronicle Collective Updated March 3, 2025 5:42 ET
Taiwan Semiconductor Manufacturing Co. (TSMC) Chief Executive Officer C.C. Wei announced at the White House on Monday that the company will invest at least $100 billion over the next several years to expand chip-manufacturing facilities in the United States. President Donald Trump, present at the event, highlighted the move as a boost to national security and a way to avoid tariffs on imported chips.
Wei detailed plans to allocate the funds in Arizona, where TSMC already operates a plant in Phoenix employing 3,000 people. The investment will support the construction of three new chip plants, two chip-packaging facilities, and a research and development center. This builds on TSMC’s existing commitments in the state, which began during Trump’s first term with a $12 billion investment, as reported by The Wall Street Journal. Subsequent expansions raised that figure to $65 billion, and the new announcement brings the company’s total U.S. investment to $165 billion.
President Trump underscored the significance of domestic production. “By doing it here, there’s no tariffs,” he told reporters, noting that chips manufactured in Taiwan and shipped to the U.S. would face tariffs of 25% to 50%. He linked the decision to broader concerns, stating, “Without the chips and semiconductors, nothing runs today. You can’t buy a car without them, you can’t—a radio, a television, you can’t get anything.” Trump added that producing a large share of semiconductors in the U.S. addresses both economic and security priorities, given the threat of invasion Taiwan faces from China.
The Phoenix facility has been a cornerstone of TSMC’s U.S. presence since its initial investment. The company’s expansion plans will increase its capacity to supply chips critical to industries ranging from automotive to consumer electronics. Wei’s announcement, delivered alongside Trump, marks a significant escalation of TSMC’s commitment to American manufacturing.
The move aligns with ongoing efforts to strengthen U.S. supply chains for semiconductors, a resource deemed essential to modern technology. TSMC, a leading global chipmaker, has faced growing pressure to diversify production amid geopolitical tensions. The new facilities in Arizona are expected to create thousands of jobs, though specific figures were not released during the White House event.
The announcement signals a long-term partnership between TSMC and the U.S. As the company prepares to break ground on these projects, attention will turn to their economic impact and the broader implications for national security.
