Taiwan Semiconductor Manufacturing Co. (TSMC) will reportedly be making a massive investment in American manufacturing, which may end up being more than $100 billion.
TSMC CEO C.C. Wei made the announcement at the White House on March 3, telling the press that his company would be investing at least $100 billion over the next few years in chip manufacturing plants located in the United States.
President Donald Trump praised the decision during the event, noting that the deal was critical to U.S. national security, citing the continued threat of communist China invading Taiwan, which could make it even more difficult for the U.S. to purchase semiconductor chips. The president also noted that TSMC’s decision will save the company and consumers a lot of money — because, if TSMC continued to manufacture the chips in Taiwan and then ship them to the U.S., they would have been subjected to tariffs of roughly 25%-50%.
“By doing it here, there’s no tariffs,” Trump explained.
“Without the chips and semiconductors, nothing runs today,” the president added. “You can’t buy a car without them, you can’t — a radio, a television, you can’t get anything.”
Trump went on to note that his administration saw TSMC’s decision as “very important, obviously business-wise” — adding that it was also important “in terms of national security, to have this large percentage of the chips, semiconductors, and other things” made in the United States.
The money will be invested in Arizona to expand TSMC’s manufacturing plant in Phoenix, which employs roughly 3,000 people. TSMC will also reportedly be building three new semiconductor chip plants, along with two chip packaging plants and a research and development center, according to Wei’s comments during the White House event.
Let's talk about TSMC's MASSIVE investment:
– 3 new chip plants
– 2 packaging facilities
– R&D center All in ARIZONA.Not China. Not Taiwan. AMERICA. And this is the world's MOST important semiconductor company right now.
These plants also reduce our war risk with China.
— Rod D. Martin (@RodDMartin) March 3, 2025
TSMC originally began investing in the United States during Trump’s first term, with the company announcing a $12 billion investment in Arizona, according to the Wall Street Journal. In the years since that initial investment, TSMC has expanded in Arizona, bring the total investment up to roughly $65 billion. With the new funding, TSMC’s total investment will rise to over $165 billion.
