TSMC plans $100 billion investment in US manufacturing capacity

Taiwan's chip manufacturing giant, Taiwan Semiconductor Manufacturing Company (TSMC), plans to invest at least $100 billion to expand its U.S. manufacturing operations.

This investment is part of a broader push by Trump to encourage investment in US manufacturing. $TSM has decided to build three new advanced chip manufacturing plants, in addition to the existing plant in Arizona and two more that are planned. This expansion is expected to bring tens of thousands of new jobs.

The investment will also include the construction of two advanced chip packaging facilities, where smaller chips will be assembled into more powerful systems, and a research and development center. This will bring the number of TSMC plants in the US to a total of six, including additional facilities.

The deal means that TSMC will invest a total of approximately $165 billion in the US. Trump has described the move as crucial not only for economic security but also for the national security of the United States, as it will allow TSMC to diversify its production outside Taiwan, which is important in the current geopolitical situation.

TSMC is the largest semiconductor manufacturer in the world, its chips powering a multitude of technology products, from iPhones and AI systems to automobiles and medical devices. The move is part of a broader effort by the US to secure a stronger position in the global chipmaking sector and maintain its lead over China in artificial intelligence.

TSMC CEO C.C. Wei said in a statement that the new plants will be the foundation of a new technology supply network centered in the United States. The project not only supports the development of U.S. manufacturing, but also strengthens global chip production, which is key to advancing artificial intelligence and smartphone development.

TSMC's investment in the US comes at a time when other technology companies such as Apple, Oracle and OpenAI are also announcing billions of dollars of investment in US manufacturing and technology projects, reflecting a growing emphasis on supporting domestic manufacturing and innovation.

TSMC initially announced a $12 billion investment to build an advanced semiconductor factory in Arizona in 2020, as concerns about the safety of U.S. dependence on Chinese chipmaking emerged. This project received significant support during Joe Biden's presidency, thanks to his CHIPS and Science Act initiative, which provided financial support for the development of chip manufacturing in the US.

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Source: Yahoo Finance