TSMC's new US investment will come on top of their existing commitments
Washington (AFP) - Taiwanese chip-making giant TSMC will invest at least $100 billion in the United States to build “cutting edge” manufacturing facilities, President Donald Trump said Monday, announcing the latest blockbuster financial pledge by a private company since his return to office.
Taiwan Semiconductor Manufacturing Co’s new investment will come on top of their existing commitments, and will go into “building five cutting edge fabrication facilities,” Trump said during a White House event, flanked by TSMC chief executive C.C. Wei.
He added that much of the funding would be invested in the US state of Arizona, where TSMC – the world’s largest chipmaker – has already invested heavily, and would create “many thousands” of high-paying jobs.
TSMC has long faced demands to move more of its production away from Taiwan, amid fears that supplies of the critical technology could be disrupted in any conflict with Beijing.
The company, during former president Joe Biden’s administration, pledged to invest more than $65 billion in three factories in Arizona, one of which began production in late 2024.
Trump recently ratcheted up the pressure on TSMC and other chip manufacturers by publicly mulling the introduction of 25 percent tariffs on all semiconductor chips made outside the United States.
Monday’s announcement brings the total amount committed by the company to around $165 billion, C.C. Wei said Monday.
“We are going to produce many chips to support AI progress, and to support smartphones’ progress,” he added.
The new investment will help expand the firm’s US footprint to include “three new fabrication plants, two advanced packaging facilities and a major R&D (research and development) team center,” while supporting 40,000 construction jobs over the next four years, TSMC said in a statement.
- Tariff threats -
Since regaining the White House, Trump has called on companies to create more manufacturing jobs in the United States, while threatening to impose steep levies on those who do not comply.
His administration has already imposed a 10 percent tariff on Chinese goods, and is scheduled to impose a 25 percent tariff Canada and Mexico from Tuesday, alongside an additional levy of 10 percent on goods from China.
On Monday, Trump said there was “no room left for Mexico or for Canada” to avoid the tariffs, adding: “They’re all set, they go into effect tomorrow.”
Trump has invited executives from some of the world’s largest companies – including OpenAI and Oracle – to the White House since his January 20 inauguration to tout investments worth hundreds of billions of dollars in US manufacturing.
The amount announced since inauguration day now totals more than $1 trillion, including a commitment from Apple to invest $500 billion over the next four years.
These gargantuan sums are sure to please Trump’s supporters. His critics point to some similarly ambitious targets pledged during his first term in office which failed to materialize.