WASHINGTON — Chip giant Taiwan Semiconductor Manufacturing Co. plans to invest a $100 billion in the United States, President Donald Trump announced Monday as he appeared with the company's head at the White House.
TSMC, the world’s biggest semiconductor manufacturer, produces chips for companies including Apple, Intel and Nvidia.
The company had already announced plans to invest more than $65 billion in the U.S., including three plants in Arizona after the Biden administration offered billions in subsidies. Its first factory in Arizona has started mass production of its 4-nanometer chips.
Trump and TSMC’s chief executive officer C. C. Wei said the $100 billion is on top of the $65 billion that was already announced.
Trump said it was a “tremendous move” and "a matter of economic security.”
“Semiconductors are the backbone of the 21st century economy. And really, without the semiconductors, there is no economy," the president said. "Powering everything from AI to automobiles to advanced manufacturing, we must be able to build the chips and semiconductors that we need right here in American factories with Americans skill and American labor.”
Wei said the investment will be for three more chip manufacturing plants, along with two packaging facilities, in Arizona.
On Monday, Phoenix Mayor Kate Gallego provided the following statement:
“TSMC is doubling down on its investment with an expansion in Phoenix testament to the U.S. semiconductor industry growth that will deliver a major win for American workers. This investment further strengthens domestic chip manufacturing, reduces reliance on foreign supply chains, and enhances national security. Billions in investment and thousands of high-tech, high-paying jobs illustrate how TSMC is a partner in cementing Phoenix as a global leader in semiconductor production. This expansion energizes innovation that fosters more economic growth, opportunities for skilled workers, and positions the Phoenix region at the forefront of advanced manufacturing.”
The $165 billion investment "is going to create thousands of high-paying jobs,” Wei said.
Former President Joe Biden in 2022 signed a sweeping $280 billion law, the CHIPS and Science Act, to try to reinvigorate chip manufacturing in the U.S., especially after the COVID-19 pandemic.
During the pandemic, chip factories, especially those overseas making the majority of processors, shut down. It had a ripple effect that led to wider problems, such as automobile factory assembly lines shutting down and fueled inflation.
Trump has criticized the law and taken a different approach, instead threatening to impose high tariffs on imported chips to bring chip manufacturing back to the U.S.
Trump also has said companies like TSMC do not need federal tax incentives.
Trump has hosted multiple business leaders at the White House since he took office in January to tout a series of investments that aim to demonstrate his leadership is a boon for the U.S. economy. He's also pointed to the tariff threats as prodding the investments.
“It’s the incentive we’ve created. Or the negative incentive,” Trump said.
In January, he appeared with the heads of OpenAI, Oracle and SoftBank at the White House as they announced plans for a new partnership to invest up to $500 billion for infrastructure tied to artificial intelligence. He also announced in January a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI.
Last week, after Apple CEO Tim Cook met with Trump at the White House, the company announced plans to invest more than $500 billion in the U.S. over the next four years, including plans for a new server factory in Texas. Trump said after their meeting that Cook promised him Apple's manufacturing would shift from Mexico to the U.S.
“I don’t have time to do all of these announcements," Trump joked Monday as he listed some of the other investments.
The Wall Street Journal first reported the planned announcement Monday.
Arizona Senator Mark Kelly called the announcement "huge news for Arizona."
“This is huge news for Arizona that officially cements our state as a global hub for building the most advanced microchips in the world, and will put tens of thousands of Arizonans to work in good-paying jobs that do not require a 4-year degree.
Today’s announcement builds on years of bipartisan collaboration between Arizona’s federal, state, and local leaders and our economic development teams to make our state the best place in the country to build these one-of-a-kind facilities. By boosting domestic microchip development and production, we’re reducing reliance on foreign supply chains and making sure America leads the way in the industries of the future.”
