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US President Donald Trump has announced that the world’s largest semiconductor manufacturer, TSMC, will invest US$100 billion in the US, which will result in five new chip manufacturing facilities being built.
The CEO of the Taiwanese semiconductor giant, C.C. Wei, alongside Trump, announced the fresh investment at the White House overnight.
“We must be able to build the chips and semiconductors that we need right here,” said Trump.
“It’s a matter of national security for us.”
🚨 @POTUS announces a $100 BILLION new investment by TSMC in U.S. chips manufacturing! pic.twitter.com/PtiaxxwMXK
— The White House (@WhiteHouse) March 3, 2025
The five new chip plants will include three fabrication plants, two advanced packaging facilities and a research and development centre.
“This is a tremendous move by the most powerful company in the world,” said Trump.
“It’s a matter of economic security.”
Wei said the latest investment is in addition to the existing US$65 billion investment it announced previously.
The TSMC partnership is part of the US’ effort to empower chip manufacturing locally rather than depending on imported chipsets.
The COVID-19 pandemic brought chip manufacturing to a standstill and, thus, a major slowdown in the production of new tech products.
In 2022, former president Joe Biden introduced the CHIPS and Science Act, a US$280 billion law that attempted to rebuild chip manufacturing in the US. The legislation was to provide US$52.7 billion in subsidies for the production and research of American semiconductors.
However, like many moves made by the former president, the legislation has been heavily critiqued by Trump, who believes that introducing tariffs on imported chips is the way to empower local chip manufacturing.
According to Commerce Secretary Howard Lutnick, chip manufacturers like TSMC are investing in US manufacturing to avoid the new tariffs the president is introducing. Additionally, under Biden’s legislation, the US$100 billion TSMC investment would be eligible for a 25 per cent manufacturing investment tax credit.
According to a TSMC spokesperson speaking to the media, the company received US$1.5 billion from the CHIPS Act prior to the Trump administration.
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