TSMC to Invest $100 Billion in U.S. Chip Factories, Likely Under Pressure from Trump

The world’s largest semiconductor maker, TSMC, plans to invest $100 billion in building factories in the United States over the next four years, US President Donald Trump is expected to announce at the White House today, Bloomberg reports.

Image Source: TSMC

In a statement, the company said: “We are excited to meet with the President and discuss our shared vision for innovation and growth in the semiconductor industry.” TSMC did not elaborate on its investment plans, and the White House has not yet commented on the information. However, the source who told Bloomberg about the company’s plans did so on condition of anonymity.

TSMC has previously committed to investing $65 billion in the United States to build manufacturing facilities in Arizona, but it is unclear whether this amount is part of the new investment package or whether it is additional investment.

TSMC’s project would require approval from Taiwan’s government. Taiwanese officials have said they will scrutinize overseas investment in advanced technologies to prevent key chip-making technologies from leaving the country. Representatives of Taiwan’s presidential office did not respond to requests for comment outside business hours.

Interestingly, this development coincides with discussions of potential trade tariffs that Trump is considering on various industries, including semiconductors, automobiles, and pharmaceuticals. Tariffs on chips could hit Taiwan hard, where about 90% of the world’s most advanced semiconductors, especially those used in artificial intelligence (AI), are made.

It is worth noting that, unlike the Biden administration, which pushed for subsidies to revive the American semiconductor industry through the Chips and Science Act signed into law in 2022, Trump prefers to support the industry through higher trade tariffs.

Recall that thanks to the “CHIP Act,” TSMC received $6.6 billion in grants to build three factories in the United States (Phoenix), the first of which has already begun operations. In addition, according to Bloomberg, representatives of the Trump administration discussed with TSMC the possibility of acquiring a controlling stake in Intel’s manufacturing facilities. These negotiations are at an early stage and are aimed at solving Intel’s financial problems, which is forced to cut jobs and suspend plans for global expansion.