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The semiconductor manufacturer previously pledged $65bn to build two facilities in Arizona.
Taiwanese semiconductor company TSMC has announced it will spend an additional $100bn on developing its facilities in Phoenix, Arizona.
In 2024, under the Biden administration and in line with the US Chips and Science Act, which aims to boost US semiconductor research, development and production, TSMC pledged $65bn to its US operations and received a grant of $6.6bn.
Founded in 1987 and headquartered in Taiwan, TSMC manufactures semiconductor components and has multiple facilities globally, including its first European base of operations which it is building in Dresden, Germany.
The new investment will go towards the development of three new fabrication plants, two advanced packaging facilities and a major R&D team centre, generating up to construction 40,000 jobs and “tens of thousands of high-paying high-tech jobs”, according to the company.
“AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications,” said TSMC chair and CEO Dr C C Wei. “With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our US semiconductor manufacturing investment by an additional $100bn, bringing our total planned investment to $165bn.”
Before he began his second term, Trump, on Joe Rogan’s podcast, expressed concern about Taiwan’s alleged monopoly on the semiconductor chip industry, accusing the country of stealing the sector away from the US. He went on to explain he had plans to impose tariffs on chips, upwards of 25pc.
However, where that plan lies now remains unclear as it has been suggested that TSMC’s US-based development may potentially free the organisation from imposed tariffs and the government has yet to elaborate upon plans to implement tariffs on the semiconductor industry.
TSMC supplies a number of high-profile companies, for example Apple, which last week announced it would be investing more than $500bn into the US over the next four years, with a focus on accelerating capabilities in AI and silicon engineering.
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