President Donald Trump has once again proven his ability to bring major investments back to American soil, announcing on Monday a monumental $100 billion commitment from Taiwan Semiconductor Manufacturing Company (TSMC).
The deal, revealed during a White House briefing alongside TSMC CEO C.C. Wei, will significantly expand U.S. chip manufacturing and reduce reliance on foreign supply chains—particularly from Asia.
TSMC, the world’s largest contract chipmaker and a key supplier to companies like Apple and Nvidia, will use the investment to construct five new facilities in the United States.
This includes three cutting-edge semiconductor fabrication plants, two advanced packaging sites, and a major research and development center, all set to be based in Arizona.
The initiative is expected to generate between 20,000 and 25,000 new American jobs.
“The most powerful AI chips in the world will be made right here in America,” Trump declared, explaining the national security implications of bringing semiconductor production back home.
TSMC’s expansion aligns with his longstanding push to reduce dependence on foreign-made microchips, a crucial component in everything from smartphones to military equipment.
This latest investment builds on TSMC’s previous commitments in the U.S., which have now reached a staggering $165 billion.
The company had already announced plans for three chip factories in Arizona, with the first now operational, the second expected to come online in 2028, and the third still in early planning.
Monday’s announcement significantly accelerates and expands those efforts.
The strategic move comes at a time when tensions with China remain high, and concerns over supply chain vulnerabilities continue to grow.
Taiwan’s dominance in semiconductor manufacturing has long been seen as a potential risk, given Beijing’s increasing pressure on the island. By shifting more of its production to the U.S., TSMC is ensuring greater stability for American tech giants and military applications.
Commerce Secretary Howard Lutnick credited Trump’s economic policies for making the deal possible, pointing to tariffs as a key driver of TSMC’s decision. “They’re coming here in huge size because they want to be in the greatest market in the world, and they want to avoid the tariffs,” Lutnick stated.
Trump’s leadership in revitalizing the semiconductor industry dates back to his first term, when he laid the groundwork for the original CHIPS Act. Though later expanded under the Biden administration, Trump has criticized Biden’s version of the legislation, calling it “so bad” compared to his own approach.
Meanwhile, reports suggest the Biden administration has scaled back the office overseeing the CHIPS Act, raising further questions about its effectiveness.
Despite the historic investment, TSMC’s stock took a hit following the announcement, with U.S.-listed shares falling over 4% on Monday and Taiwan-listed shares dropping 2% on Tuesday.
Analysts point to higher manufacturing costs in the U.S. compared to Taiwan as a concern, but the strategic benefits of shifting production stateside outweigh short-term financial worries.
“This is huge news for Arizona,” said U.S. Senator Mark Kelly, highlighting the economic benefits the deal will bring to the state. “It cements our state as a global hub for building the most advanced microchips in the world and will put tens of thousands of Arizonans to work in good-paying jobs that do not require a four-year degree.”
With Trump at the helm, America is once again proving that it can compete and lead in advanced technology manufacturing.