TSMC to Boost US Investments by $100 Billion

Taiwan Semiconductor Manufacturing Company (TSMC) on Tuesday said that it intends to expand its investment in advanced semiconductor manufacturing in the US by an additional $100 billion over the next three years.

Building on the company’s ongoing $65 billion investment in its advanced semiconductor manufacturing operations in Phoenix, Arizona, TSMC’s total investment in the US is expected to reach $165 billion.

The expansion includes plans for three new fabrication plants, two advanced packaging facilities and a major R&D team center, solidifying this project as the largest single foreign direct investment in the US history.

Through this expansion, TSMC expects to create hundreds of billions of dollars in semiconductor value for AI and other cutting-edge applications. The Taiwanese chip giant’s expanded investment is expected to support 40,000 construction jobs over the next four years and create tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D.

It is also expected to drive more than $200 billion of indirect economic output in Arizona and across the US in the next decade. This move underscores TSMC’s dedication to supporting its customers, including America’s leading AI and technology innovation companies such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm.

The US President Donald Trump, who met TSMC Chairman and CEO Dr C C Wei at White House on Monday, said that the investment means TSMC, which supplies the vast majority of the world’s most advanced semiconductors, will avoid the tariffs he has publicly mulled imposing on the global industry, to bring more manufacturing to the US and assert US trade dominance over both rivals and allies.

First Step in 2020

TSMC Chairman and CEO Dr C C Wei said that back in 2020, thanks to President Donald Trump’s vision and support, his company has embarked on its journey of establishing advanced chip manufacturing in the US.

“This vision is now a reality as AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications. With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our US semiconductor manufacturing investment by an additional $100 billion, bringing our total planned investment to $165 billion,” he said.

TSMC’s Arizona fab currently employs more than 3,000 people on 1,100 acres of land in Arizona. The site has been in volume production since late 2024. This expansion will play a crucial role in strengthening the US semiconductor ecosystem by increasing American production of advanced semiconductor technology. It will also complete the domestic AI supply chain with TSMC’s first US advanced packaging investments.

In the US, in addition to its latest manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centers in Austin, Texas, and San Jose, California.

TSMC is the largest contract chipmaker in the world, and it first set up shop in Arizona in 2020, with production there beginning late last year. The company’s further expansion in the US would bring additional investment to semiconductor manufacturing at a time when much of the industry is consolidated in Asia.