Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment to build five new semiconductor facilities in the U.S., a plan revealed in collaboration with former President Donald Trump.
This expansion, including three chip fabrication plants, two advanced packaging facilities, and a major R&D center, aims to reduce the U.S.’s reliance on foreign-made semiconductors and strengthen national security. TSMC’s CEO, C.C. Wei, made the announcement at the White House, highlighting the need to produce chips domestically, reports Reuters.
This investment is part of TSMC's ongoing U.S. expansion, which also includes a previously announced $25 billion increase, bringing its total investment in the U.S. to $65 billion, with plans to add a third Arizona factory by 2030. The company plans to create 40,000 construction jobs over the next four years, although it has not given a timeline for the new facilities.
TSMC’s U.S. operations are critical to the U.S. chip industry, providing chips for major companies like Nvidia, Qualcomm, and AMD. The move is expected to reduce supply chain risks and may even assist rival Intel through a potential joint venture. For Trump, the announcement serves to fulfill his campaign promises of boosting domestic industries and creating jobs.
Additionally, the expansion aligns with the CHIPS and Science Act, which was passed under President Biden to promote U.S. semiconductor production and offers incentives like a 25% manufacturing tax credit. As TSMC seeks to mitigate risks posed by geopolitical tensions, especially with China’s claims over Taiwan, this investment further cements Taiwan's role in the global tech supply chain while responding to concerns of over-reliance on Taiwanese manufacturing.
Bd-pratidin English/FNC
