The world’s most advanced chipmaker is betting another $100bn on America. TSMC, the Taiwanese semiconductor giant that supplies Nvidia and Apple, said it would invest the sum in Arizona – raising its total US commitment to $265bn – as President Donald Trump pushes to bring manufacturing back from Asia.
The announcement, which the Commerce Department said will create ‘tens of thousands of American jobs’, came as TSMC reported a staggering 77% leap in second-quarter net profit, to $22bn from $12.4bn a year earlier. Its share price has surged more than 55% this year, giving a stock market valuation of around $2tn, making it Asia’s most valuable company.
“TSMC pledges $100bn more for Arizona plants, raising total US investment to $265bn.”
TSMC chief executive CC Wei said the extra investment would likely see four new plants built in Arizona, adding to the eight already under construction or planned. He gave no timeline, saying only that it would depend on the ‘market situation’. But he was clear about the rationale: ‘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.’
The move is a win for Trump, who has made boosting domestic chip production a priority since Covid-19 shortages exposed the dangers of relying on Asian supply chains. Last year he attributed TSMC’s earlier expansion in the US to his threats of tariffs on Taiwan and the global semiconductor business. In January, the US agreed to cut tariffs on goods from Taiwan to 15% in exchange for hundreds of billions of dollars in investment aimed at boosting semiconductor production.
Commerce Secretary Howard Lutnick welcomed the plans, saying: ‘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.’
Demand for TSMC’s chips – which power AI data centres and smart devices – has boomed, helping to fuel the company’s record profits. But the expansion leaves unanswered questions: how quickly can the new plants come online, and will the tariff deal hold as the global chip race intensifies?