TSMC Doubles Down on U.S. Chip Manufacturing with $100B Investment

Taiwanese semiconductor giant TSMC has announced plans to invest approximately $100 billion in expanding its U.S. chip manufacturing operations. During a press conference at the White House, President Donald Trump stated that the funds would go toward building two additional semiconductor plants in Phoenix, Arizona.

This investment adds to the $65 billion that TSMC has already allocated for constructing three factories in Arizona. Additionally, the company secured $6.6 billion in government funding through the CHIPS and Science Act.

Earlier this year, TSMC launched production of 4nm chips in Arizona. By the end of the decade, the company aims to manufacture 2nm processors and even more advanced technologies within the U.S. However, reports suggest that these cutting-edge chips will first be produced in Taiwan before U.S. factories begin their rollout. The production of 2nm chips is expected to commence in the second half of the year.

New Jobs, AI Chips & Trade Policies

TSMC’s second Arizona plant, initially set to open in 2026, has been delayed to 2027–2028. Speaking at the White House, CEO C.C. Wei emphasized that the company is committed to creating thousands of high-paying jobs and supplying chips crucial for artificial intelligence applications.

Meanwhile, The New York Times reported that the Trump administration is exploring a plan that could give TSMC control over Intel’s chip manufacturing facilities.

In other industry news, Apple has pledged over $500 million to expand its U.S. operations. Over the next four years, the company plans to hire 20,000 employees and construct a server manufacturing plant in Texas.

Additionally, new U.S. tariffs are set to take effect on March 4, imposing a 25% duty on semiconductor products from Mexico and Canada, along with a 10% tax on imports from China.