Taiwan’s leading semiconductor company, TSMC, has revealed an additional $100 billion for the construction of five new state-of-the-art facilities in the United States. This strategic move was announced by President Donald Trump on Monday and is said to be the biggest. TSMC, the world’s largest chip maker, is expected to spend most of the funds in Arizona, reports say.
On Monday, Trump announced during a White House event with TSMC CEO C.C. Wei that this investment would lead to the construction of three fabrication plants, two advanced packaging facilities, and one state-of-the-art research and development center. It is expected to create thousands of high paying jobs and support 40,000 construction jobs over the next four years.
This decision comes as Taiwan is facing increasing pressure to shift semiconductor manufacturing base due to threats from China. The tension between Taiwan and China has increased fear that any conflict may adversely affect the global chip supply. Furthermore, the threat by Trump to impose a 25 percent tariff on semiconductor chips made outside the United States has also quickened the momentum for domestic production.
Nevertheless, this is an extra $100 billion commitment besides the $65 billion that TSMC had previously announced during the administration of former President Joe Biden to build three factories in Arizona. Despite those earlier plans, only one facility has started production, starting in late 2024. With the new investment, TSMC’s total investment in chip manufacturing in the U.S. is about $165 billion.
Nevertheless, Wei argued that there is still a need for Taiwan in the semiconductors supply chain of the world. He argued that Taiwan has to keep the top position in chip production, and the industry is like a ‘silicon shield’ against Chinese aggression or blockade. The small nation has been on the limelight of the geopolitics as China considers Taiwan as its territory.
As the global demand for semiconductors continues to rise, Taiwan’s TSMC continues to play a leading role in the international market as well as in the domestic chip manufacturing industry.
