Trump Unveils Major Milestone: Taiwanese Chipmaker TSMC to Invest $100 Billion in U.S. Manufacturing!

Chipmaking leader Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to invest at least $100 billion in its manufacturing operations in the United States. This news was revealed by President Donald Trump at the White House, accompanied by TSMC CEO C.C. Wei and other officials.

This significant investment is part of Trump’s strategy to promote American manufacturing. The funds will help build two new chipmaking facilities in Arizona, adding to the three already in progress. This expansion is expected to create tens of thousands of jobs in the area.

Trump emphasized the importance of this investment for both economic and national security, stating that it will help TSMC reduce its reliance on Taiwan for chip production. TSMC’s total investment in the U.S. will reach around $165 billion with this latest commitment.

TSMC is the world’s largest manufacturer of semiconductors. Its chips are integral to many technologies, powering everything from smartphones to medical devices. The U.S. aims to strengthen its position in the global chip market and to keep pace with advancements in artificial intelligence.

Trump added that TSMC’s investments, along with others, could help the U.S. capture 40% of the global chipmaking market, although this goal might take years to accomplish. C.C. Wei highlighted that this expansion will support advancements in both AI and smartphones, expressing gratitude to key TSMC partners like Apple and Nvidia.

TSMC is not alone in its commitment to U.S. investment. Apple recently announced a $500 billion investment to expand its operations in the country over the next four years. This move appears partly aimed at avoiding tariffs on goods imported from China, although some of these investments were likely already in progress.

Other companies like Oracle, OpenAI, and SoftBank have also committed to investing in U.S. artificial intelligence infrastructure, with plans to invest another $500 billion in the coming years through a new company called Stargate.

TSMC initially started its U.S. journey with a $12 billion investment for a semiconductor factory in Arizona in 2020. This effort was a response to growing concerns about America’s heavy reliance on Asian chip manufacturers.

Under President Joe Biden, TSMC received further support through the CHIPS and Science Act, facilitating more significant investments in the U.S. chipmaking sector. Though there have been some delays, TSMC plans to build two more plants in Arizona and increase its state investment to $65 billion.

Historically, U.S. presidents have made grand announcements of large corporate investments to spur manufacturing, but success rates have been varied. For instance, a 2017 deal with Foxconn for a $10 billion electronics factory in Wisconsin promised 13,000 jobs but fell short, resulting in a significantly reduced investment and fewer job opportunities than anticipated.

Despite challenges, Foxconn has still invested $1 billion in Wisconsin and maintains a significant manufacturing site there. That location has transformed into a Microsoft data hub focused on training and developing AI technologies, demonstrating adaptability in the face of changing market conditions.

Source link