Taiwan Semiconductor Manufacturing Company (TSMC) is set to invest $100 billion in advanced manufacturing facilities in the United States. The planned move responds to potential tariff threats on semiconductor imports from Taiwan, as proposed by the Donald Trump’s administration. It also aligns with the Biden administration’s CHIPS and Science Act, which seeks to boost domestic semiconductor production. By expanding its operations on U.S. soil, TSMC aims to mitigate trade risks while strengthening its global supply chain.
The planned investment will support the construction of several state-of-the-art fabrication plants in Arizona. The first facility began producing four-nanometer chips in late 2024. A second plant will focus on the advanced A16 chip technology with production expected to start by 2026. A third fab is planned for two-nanometer chips projected to commence operations by 2028. These investments will drive technological progress in sectors like artificial intelligence, automotive and consumer electronics.
The U.S. government supports the initiative through the CHIPS Incentives Program, which has allocated up to $6.6 billion for the project. The planned facilities are expected to create around 6000 high-tech jobs and over 20000 construction jobs. This funding underscores a national commitment to reducing reliance on foreign supply chains and ensuring a stable semiconductor market. The program reinforces industry growth and enhances the nation’s competitiveness in the global market.
TSMC’s planned investment marks a strategic shift in global semiconductor manufacturing. By developing production facilities in the U.S., the company seeks to reduce dependence on Taiwan and mitigate geopolitical risks. This initiative is expected to motivate major tech companies like Apple, NVIDIA and AMD to boost their U.S. investments. It may also inspire other semiconductor firms to invest domestically, further strengthening industry stability and driving technological innovation.
