TSMC Commits Additional $100bn to Expand US Chip Production
Taiwanese semiconductor giant TSMC has announced plans to invest an additional $100 billion in its US operations, significantly expanding its manufacturing footprint in Arizona as demand for advanced chips continues to surge.
The new commitment raises the company’s total planned investment in the United States to $265 billion. TSMC Chief Executive Officer C.C. Wei said the latest funding could support the construction of four additional chip manufacturing plants in Arizona, adding to the eight facilities that are already planned or under construction.
The announcement coincided with the company’s second-quarter financial results, which showed a 77 per cent increase in net profit. TSMC reported earnings of $22 billion for the April-to-June period, up from $12.4 billion during the same quarter last year, driven by sustained global demand for advanced semiconductors used in artificial intelligence infrastructure and smart devices.
TSMC manufactures cutting-edge chips for some of the world’s largest technology companies, including Nvidia and Apple. The strong performance has helped cement its position as Asia’s most valuable listed company, with its market value climbing to approximately $2 trillion after its shares gained more than 55 per cent this year.
While Wei did not provide a timeline for the construction of the proposed new plants, he said the pace of expansion would depend on market conditions.
“We believe this investment will help to further foster the development of the US semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States,” Wei said.
The US government welcomed the announcement, describing it as another step towards strengthening domestic semiconductor manufacturing.
President Donald Trump has made expanding chip production in the United States a key policy objective, following supply chain disruptions during the COVID-19 pandemic that exposed the country’s dependence on overseas manufacturers.
Earlier this year, the United States agreed to reduce tariffs on imports from Taiwan to 15 per cent as part of a broader trade and investment agreement that included commitments to increase semiconductor manufacturing within the US.
Commenting on TSMC’s latest investment, US Commerce Secretary Howard Lutnick credited the administration’s economic policies for attracting major manufacturing projects.
“President Trump’s leadership is driving companies to invest in American manufacturing. TSMC’s announcement of an additional $100 billion investment following our historic deal on trade and investment with Taiwan will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America,” Lutnick said.
The expansion is expected to strengthen the US semiconductor supply chain while supporting growing global demand for chips used in artificial intelligence, cloud computing and other advanced technologies.
