TSMC Pledges $100B U.S. Expansion, Boosting Jobs and Chip Production

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has pledged to invest an additional $100 billion in U.S. manufacturing facilities. This significant investment, announced by President Donald Trump alongside TSMC CEO C.C. Wei at the White House, will create hundreds of billions of dollars in economic activity and generate between 20,000-25,000 jobs.

TSMC's commitment builds on its existing $65 billion investment in Arizona, bringing the total investment to $165 billion, which the company claims is the largest single foreign direct investment in U.S. history. Over the next four years, TSMC plans to construct three additional chip fabrication plants, two advanced packaging facilities, and a research center at the Arizona complex.

TSMC began high-volume production of 4-nanometer chips at its first Arizona facility in late 2024, marking a significant milestone as it was the first time such advanced chips were manufactured on U.S. soil. The company's Arizona fab currently employs over 3,000 people across its 1,100 acres of land.

The new facilities will produce cutting-edge chips, including future 2-nanometer semiconductors, which are crucial for next-generation AI systems, mobile compute systems, crypto mining equipment, and other critical infrastructure. President Trump emphasized the importance of semiconductors, stating, "Without the semiconductors, there is no economy, powering everything from AI to automobiles to advanced manufacturing."

The investment comes amid intensifying U.S.-China competition in the tech sector, with semiconductors increasingly recognized as critical infrastructure for national security and economic stability. For TSMC, this strategic repositioning may help insulate the company from disruptions caused by U.S.-China tensions while securing its position in the critical American market.