US President Donald Trump Announces $300 Billion Investment from Taiwan Semiconductor Manufacturing Co. in Arizona, Teases New Chip Tariffs to Boost US Manufacturing

President Donald Trump announced that Taiwan Semiconductor Manufacturing Co. (TSMC) will invest $300 billion in Arizona to boost US chip manufacturing. However, analyst Ming-Chi Kuo believes Trump's statement is a negotiation tactic and TSMC has only committed to $165 billion in US investments. TSMC CEO CC Wei reaffirmed strong demand for AI chips, despite US tariffs creating indirect headwinds. TSMC shares declined 2.73% during regular trading and slipped further in pre-market hours.

President Donald Trump recently announced that Taiwan Semiconductor Manufacturing Company (TSMC) will invest $300 billion in Arizona to bolster US chip manufacturing. However, analyst Ming-Chi Kuo believes Trump's statement is a negotiation tactic, as TSMC has only committed to $165 billion in US investments [1]. Despite the uncertainty, TSMC CEO C.C. Wei reaffirmed strong demand for AI chips, stating that the company's second Arizona fab has finished construction and will use 3 nanometer (nm) process technology [3].

TSMC's shares declined 2.73% during regular trading and slipped further in pre-market hours following Trump's announcement. The company's American depositary receipts fell to close at $232.47, while its shares on the Taiwan Stock Exchange (TWSE) dropped NT$25 (US$0.84) to NT$1,125 [3].

Trump's comment attracted attention in Taiwan due to the ongoing tariff situation. Unlike its main competitors Japan and South Korea, Taiwan faces tariffs of 20% on goods imported into the US. There has been speculation that Taiwan will have to pledge a huge amount of investment in the US to bring that tariff rate down, with Economic Affairs Minister Kuo Jyh-huei suggesting Monday in a meeting with business representatives that the figure could be as high as $400 billion [3].

TSMC's original $65 billion investment was to build three chip fabrication plants, while the additional investment would be put into three new fabs, two advanced packaging facilities, and a research and development center [3]. The Hsinchu-based firm expects this move to drive more than $200 billion of indirect economic output in Arizona and across the US in the next decade [3].

In May, TSMC wrote a letter to the US Department of Commerce warning that the tariff policy could backfire, stating that new import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona's significant investment plan in Phoenix [3].

References:
[1] https://www.theregister.com/2025/08/06/trump_tsmc_300b/
[2] https://www.ainvest.com/news/apple-tsmc-major-chipmakers-exempt-trump-100-tariff-threat-investing-manufacturing-2508/
[3] https://focustaiwan.tw/politics/202508060009