Taiwan Semiconductor Manufacturing Co. (TSMC) has unveiled plans to invest an additional $100 billion in American chip manufacturing facilities, The Wall Street Journal reported Monday, significantly expanding the company's existing operations in Arizona over the coming years.
The ambitious expansion was announced during a White House appearance where TSMC Chief Executive CC Wei joined US President Donald Trump to outline the project details, according to The Wall Stree Journal. The investment will fund construction of three new chip manufacturing plants, two chip-packaging facilities, and a research and development center in Arizona.
The WSJ reported that this massive influx of capital would increase TSMC's total investment in US manufacturing to approximately $165 billion, building upon its initial $12 billion commitment made in 2020. The company's first Arizona factory began mass production in late 2023, with operations steadily expanding since then.
"We must be able to build the chips and semiconductors that we need right here in American factories with American skill and American labor, and that's exactly what we're doing," President Trump said during the announcement, WSJ noted. Trump described the expansion as crucial for both economic and national security interests.
The president also suggested that his tariff policies influenced TSMC's decision, stating that chips manufactured in Taiwan and imported to the US could face tariffs of "25% or 30% or 50% or whatever the number may be." By contrast, domestically produced semiconductors would avoid these additional costs.
TSMC's expansion aligns with bipartisan efforts to revitalize America's semiconductor industry after decades of manufacturing migrating primarily to Asian countries. The Taiwan-based company currently holds a dominant position in advanced chip manufacturing, producing components essential for artificial intelligence systems, smartphones, and other cutting-edge technologies.
The announcement represents a significant development in US semiconductor policy, which has sought to address vulnerabilities in the global supply chain revealed during the COVID-19 pandemic. Previous shortages led to disruptions across multiple industries, particularly automotive manufacturing.
The paper reported that TSMC's Arizona expansion would include advanced chip-packaging facilities, which are especially critical for AI-related semiconductor components. These specialized packaging techniques enhance performance by integrating multiple components, improving power efficiency, and enabling faster data transfer – all essential factors for artificial intelligence applications.
The company has previously received federal support through the 2022 CHIPS Act, which allocated billions in grants for domestic semiconductor manufacturing. TSMC was awarded up to $6.6 billion in federal grants and has begun receiving funds from this program, complemented by tax credits designed to incentivize chip production on American soil.
During the White House event, Trump characterized the semiconductor industry as strategically vital, noting that "Taiwan pretty much has a monopoly on that market." The president has consistently advocated for increased domestic chip production, though his approach differs from previous administrations. While supporting the outcome of more US-based manufacturing, Trump has criticized the CHIPS Act itself, arguing that tariffs represent a more effective method for attracting industry investment.
The announcement follows a pattern of high-profile corporate investment pledges at the White House. Other recent announcements included a potential $500 billion investment in artificial intelligence infrastructure from a consortium including OpenAI's Sam Altman, database company Oracle, and SoftBank Group, though Trump senior advisor Elon Musk has publicly questioned whether this particular project would ultimately materialize.
Industry analysts view TSMC's expanded commitment as a significant win for US technology policy, potentially creating thousands of jobs while strengthening domestic capabilities in a sector increasingly viewed as essential to economic competitiveness and national security.
