TSMC Commences Third Arizona Chip Factory, Trump Tariffs Drive $100B Investment

Taiwan Semiconductor Manufacturing Company (TSMC) has commenced the construction of its third chip factory in Arizona, USA. This development follows the Trump administration's threats to impose additional tariffs to boost domestic manufacturing. TSMC, recognized as a global leader in chip manufacturing, has unveiled the third phase of its expansion plans in the United States. Concurrently, the U.S. Secretary of Commerce visited the site of TSMC's factory in Arizona, highlighting the significance of this investment as the largest foreign investment in U.S. history.

TSMC is a critical supplier of chips to major companies, including Apple and NVIDIA, and is pivotal in the U.S. government's efforts to attract manufacturing back to the country. The Secretary of Commerce hinted at the possibility of withholding federal semiconductor subsidies promised under the CHIPS and Science Act for companies that significantly expand their U.S. projects.

In March, TSMC's CEO, C.C. Wei, met with Trump at the White House and announced an additional $100 billion investment in U.S. factory construction. This investment, combined with TSMC's previous plans to invest $65 billion in the U.S., will result in six advanced wafer fabrication plants and several advanced packaging plants in the country. The Secretary of Commerce noted that the Trump administration successfully secured this additional $100 billion investment without offering any subsidies. He emphasized that tariffs were the driving force behind this investment, which will create 40,000 construction jobs and 20,000 permanent jobs in the U.S. semiconductor industry.

TSMC's CEO also mentioned that the construction of the second factory in Arizona is complete, and the company is focusing on accelerating production. The first factory in Arizona began mass production in the fourth quarter of last year, with yields comparable to those in Taiwan. The third and fourth factories will use TSMC's most advanced N2 and A16 process technologies, while the fifth and sixth factories will employ even more advanced technologies.