TSMC to Invest $100 Billion in U.S. Chip Manufacturing

Taiwan Semiconductor Manufacturing (TSMC) will invest “at least” $100 billion over four years to expand its processor production in the United States, according to President Donald Trump, as reported by WSJ.

“We are going to produce many AI chips to support the progress of artificial intelligence,” commented the CEO of the Taiwanese firm, C.C. Wei.

Trump described these investments as “a tremendous step by the most powerful company in the world.” This new initiative will increase TSMC’s total investments in the U.S. to $165 billion. The funds will be used to build five new facilities in Arizona.

On January 21, Trump announced $500 billion in private sector investments for artificial intelligence infrastructure. As part of this initiative, companies OpenAI, Softbank, and Oracle plan to create a joint venture named Stargate.

TSMC’s move, supplying semiconductors to American firms for artificial intelligence work, aligns with Trump’s efforts to make the U.S. a hub for AI.

He has repeatedly called for the return of semiconductor manufacturing to the U.S. after much of the industry moved overseas. Developing this sector is a matter of economic and national security, the politician stated.

In 2020, TSMC committed $12 billion to build its first American chip manufacturing plant in Arizona. The amount was later increased to $65 billion, resulting in the construction of three facilities. The company also secured government support, receiving a $6.6 billion subsidy from the Department of Commerce.

Back in October 2024, it was reported that OpenAI had partnered with Broadcom and TSMC to develop its own AI chip.