Trump announce $100B chip investment from Taiwan, creating 40,000 jobs
People walk beside a logo outside the Taiwan Semiconductor Manufacturing Company (TSMC) Museum of Innovation at its headquarters in Hsinchu on Nov. 21, 2024. (AFP Photo)
U.S. President Donald Trump announced on Monday that Taiwan Semiconductor Manufacturing Company (TSMC) will invest at least $100 billion in the U.S. for establishing new facilities.
TSMC’s new investment will come on top of their existing commitments and will go into “building five cutting edge fabrication facilities,” Trump said during a White House event, flanked by TSMC chief executive C.C. Wei.
He added that much of the funding would be invested in the U.S. state of Arizona, where TSMC—the world’s largest chipmaker—has already invested heavily, and would create “many thousands” of high-paying jobs.
Monday’s announcement brings the total amount committed by TSMC to around $165 billion, Wei said. “We are going to produce many chips to support AI progress, and to support smartphones’ progress,” he said.
The new investment will help expand the firm’s U.S. footprint to include “three new fabrication plants, two advanced packaging facilities and a major R&D (research and development) team center,” while supporting 40,000 construction jobs over the next four years, TSMC said in a statement.
‘Silicon shield’ against China
TSMC has long faced demands to move more of its production away from Taiwan, amid fears that supplies of the critical technology could be disrupted in any conflict with Beijing.
The concentration of chip manufacturing in Taiwan has been described as a “silicon shield” against a possible invasion or blockade by China, which claims the island as part of its territory and has threatened to use force to bring it under its control.
The company pledged during former President Joe Biden’s administration to invest more than $65 billion in three factories in Arizona, one of which began production in late 2024.
Trump recently ratcheted up the pressure on TSMC and other chip manufacturers by publicly mulling the introduction of 25% tariffs on all semiconductor chips made outside the United States.
Taiwan will review the investment “in accordance with the law” and ensure that the “most advanced manufacturing processes will remain in Taiwan,” President Lai Ching-te’s office said. Taiwan Premier Cho Jung-tai said the island looked forward to “continuing to cooperate with friendly countries for mutual benefits.”
However, he said it was important that Taiwan maintain its “key position” in the global chip supply chain and “ensure that we are leading in key technologies.”
