Taiwan Semiconductor Manufacturing Co (TSMC), the world's leading contract chipmaker, has announced a massive expansion of its US operations.
According to a company press release, TSMC will invest an additional $100 billion in American semiconductor production on top of the $65 billion already committed, bringing the total investment to $165 billion - the largest foreign direct investment in US history.
The new investment will fund the construction of three production facilities, two advanced packaging plants, and a research and development center. TSMC expects to create approximately 40,000 construction jobs over the next four years, with tens of thousands of technology sector positions to follow once operations are fully underway.
Arizona facilities lead America's advanced chip production
Late last year, TSMC's first Arizona factory began producing advanced 4-nanometer chips - marking the first time semiconductors of this complexity have been manufactured on American soil. Two additional factories currently under construction will eventually produce even more sophisticated components, including 2-nanometer chips.
For TSMC, this investment represents a strategic diversification of its production locations beyond Taiwan, against the backdrop of ongoing tensions with China. For the United States, the announcement aligns with bipartisan efforts to strengthen domestic semiconductor manufacturing capacity and maintain technological leadership, particularly in artificial intelligence development.
The announcement comes as TSMC is also reportedly considering investing in parts of Intel's struggling chip-making business - a move Bloomberg reports is being explored at the request of Trump administration officials.
TSMC's increased American presence follows the Biden administration's finalization of a $6.6 billion grant agreement with the company last November under the CHIPS and Science Act.
Taiwan remains central despite US expansion
Despite the massive investment figures, Taiwanese government officials have emphasized that TSMC's expansion doesn't signal a significant departure from its home base. According to market analyst Ming-Chi Kuo, TSMC's advanced process facilities in the United States will account for only five to seven percent of the company's total production after construction is completed. Major customers like Nvidia and Apple will therefore continue to rely heavily on TSMC's Taiwanese manufacturing capabilities.
Taiwan's Premier Cho Jung-tai stated after the announcement that the government and local industry sectors maintained continuous communication throughout the planning process. Michelle Lee, spokesperson for Taiwan's government cabinet, pointed out that the United States remains Taiwan's largest investment destination at 30 percent of foreign investments, compared to just 7.5 percent for China - a percentage that continues to decline.
