Washington: U.S. President Donald Trump announced that Taiwan Semiconductor Manufacturing Co. (TSMC) will invest US$100 billion to construct advanced chip manufacturing facilities in the United States. This move aligns with Trump's strategy to enhance domestic manufacturing through tariffs.
According to Yonhap News Agency, the announcement follows Trump's previous accusations that Taiwan was taking U.S. chip businesses, urging the return of these businesses to America. Commerce Secretary Howard Lutnick had also stated in his January confirmation hearing that TSMC had "leveraged" the U.S. and diverted chip businesses from the country.
President Trump revealed the investment after a meeting at the White House with TSMC CEO C.C. Wei, stating that the majority of the investment will likely be in Arizona. This comes in addition to TSMC's existing $65 billion investment in Arizona, which is earmarked for five state-of-the-art fabrication facilities.
TSMC CEO C.C. Wei highlighted that the facilities will focus on producing AI chips, crucial for supporting advancements in artificial intelligence. This significant investment is part of TSMC's strategy to expand its footprint in the U.S. semiconductor market.
In November, the Commerce Department under the Biden administration had finalized a $6.6 billion subsidy for TSMC's U.S. unit to support chip production in Phoenix, Arizona. This move is expected to be closely monitored by South Korean chipmakers, Samsung Electronics Co. and SK hynix, as they navigate the impact of U.S. tariffs aimed at boosting domestic manufacturing.
The Commerce Department previously awarded Samsung Electronics up to $4.7 billion in direct funding for its chipmaking investment in central Texas and provided SK hynix with up to $458 million in direct funding and up to $500 million in loans for its Indiana investment.