Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chipmaker, has pledged at least $100 billion to expand its chip manufacturing operations in the US. This investment builds upon TSMC's existing $65 billion commitment for three Arizona factories, further enhanced by a $6.6 billion grant from the Biden administration's CHIPS Act.
The new investment will fund two additional chip manufacturing facilities in Phoenix, Arizona. While TSMC began producing 4-nanometer chips at its Arizona plant in January 2025, future factories are projected to produce chips using 2nm or more advanced technology by the end of the decade. However, the timeline for the second Arizona plant has been pushed back to 2027 or 2028.
TSMC's CEO, C.C. Wei, highlighted the creation of thousands of high-paying jobs and the production of numerous AI chips. A New York Times report suggested that the Trump administration played a role in encouraging TSMC's expansion.
This investment comes amidst Apple's announced $500 billion investment in the US and President Trump's plans to impose tariffs on semiconductors and other goods, starting as early as April. A 25 percent tariff on products from Mexico and Canada, and an additional 10 percent tax on imports from China, are also scheduled to come into effect in March.