Synopsis
On March 4, US President Donald Trump revealed that TSMC is set to invest $100 billion to construct advanced chip manufacturing facilities in the US, aiming to strengthen domestic production through tariffs.Key Takeaways
- TSMC to invest $100 billion in US chip facilities
- Investment primarily focused in Arizona
- Plans include production of AI chips
- Previous subsidies from the Biden administration
- Impact on South Korean chipmakers anticipated
Washington, March 4 (NationPress) US President Donald Trump announced that Taiwan Semiconductor Manufacturing Co (TSMC) is set to invest $100 billion to establish cutting-edge chip manufacturing facilities in the United States. This initiative is part of his strategy to utilize tariffs to enhance domestic production.
This declaration follows Trump's recent accusations against Taiwan for drawing away US chip businesses, asserting that these companies should return to American soil. During his confirmation hearing in January, Commerce Secretary Howard Lutnick also asserted that TSMC has “leveraged” the US to take chip businesses from America, according to reports from the Yonhap news agency.
“Today, Taiwan Semiconductor is revealing their plan to invest at least $100 billion in new capital into the U.S. in the near future to create state-of-the-art semiconductor manufacturing facilities,” he stated after meeting with TSMC CEO C.C. Wei at the White House. “Most of this investment will likely be in Arizona, which is an excellent state.”
This $100 billion investment is in addition to TSMC's ongoing $65 billion investment in Arizona, according to the TSMC CEO. The funds will be utilized to construct five advanced fabrication facilities in the Grand Canyon State.
“Most importantly, we will be manufacturing AI chips. We will produce numerous chips to foster AI development,” the TSMC CEO stated.
In November, the Commerce Department under the previous Biden administration confirmed a $6.6 billion government subsidy for TSMC's U.S. operations for chip production in Phoenix, Arizona.
TSMC's investment strategy is expected to be closely monitored by South Korean chip manufacturers, Samsung Electronics Co. and SK Hynix, as Trump has been leveraging tariffs as a crucial policy to enhance domestic manufacturing and reduce America's trade deficits.
Late last year, the Commerce Department stated it had granted Samsung Electronics up to $4.7 billion in direct funding to support their chipmaking investments in central Texas, along with offering up to $458 million in direct funding and up to $500 million in loans to SK Hynix for its investment in Indiana.
