TSMC’s $100 Billion U.S. Bet: A Semiconductor Powerhouse Rises
1min read Taiwan semiconductor manufacturing Company (TSMC) has announced plans to invest an additional $100 billion in the United States to bolster advanced semiconductor manufacturing. This comes on top of the existing $65 billion project in phoenix, Arizona, bringing TSMC’s total U.S. investment to an estimated $165 billion.
TSMC initiated its first U.S. investment in May 2020, during President Trump’s first term, with an initial commitment of around $12 billion. Under President Biden’s administration and encouraged by the CHIPS and Science Act, tsmc declared in 2023 the construction of a second semiconductor plant, increasing the combined U.S. investment to $40 billion. By 2024, plans for a third plant were unveiled, pushing the total to $65 billion and promising to create over 25,000 direct and indirect jobs.
The forthcoming facilities will include a 4nm plant already in production, a 3nm plant delayed to 2028, and eventually a 2nm or more advanced technology facility anticipated by the late 2020s. This expansion supports the U.S. government’s strategic goal of producing 20% of the world’s most advanced logic chips domestically by 2030.
The Biden administration has agreed to provide substantial support to TSMC, including up to $6.6 billion in subsidies and $5 billion in low-interest loans as part of the CHIPS Act incentive program. These measures aim to enhance domestic production of critical semiconductors.
TSMC’s July announcement of investing $100 billion into the U.S. marks a doubling of the investment figure outlined during President Biden's term, an effort also attributed to potential pressures from President Trump’s policies aimed at incentivizing semiconductor manufacturing within the United States through tariff adjustments.
This significant investment will see TSMC establish three new semiconductor fabrication plants, two advanced packaging facilities, and a major research center in the U.S., marking it as one of the largest single foreign direct investment projects in American history.
The expanded investment is projected to create around 40,000 construction jobs over the next four years and tens of thousands of high-tech manufacturing and R&D jobs, potentially driving over $200 billion in indirect economic output across the U.S. over the next decade.
TSMC's commitment further demonstrates its dedication to supporting key U.S. clients such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm who lead in AI and technological innovation.
As part of its increased investment efforts, TSMC will enhance the U.S.’s semiconductor ecosystem by augmenting advanced technology production, with the expanded packaging capabilities forming a complete AI supply chain. Moreover, the new research center will help foster advanced process technology capabilities in the U.S.
This strategic push highlights TSMC’s role in underpinning the U.S. semiconductor ecosystem and solidifying its presence as a cornerstone of the global tech industry landscape. 