Taiwanese chipmaker TSMC will invest an additional $100bn (£74bn) in Arizona, raising its total commitment to the US to $265bn and likely adding four new plants to the eight already being built or planned. The announcement, which the US Commerce Department said will create tens of thousands of American jobs, comes as a boost to President Donald Trump’s push to bring advanced manufacturing back to America. TSMC is the world’s most advanced chipmaker, supplying designs from Nvidia and Apple, and its share price has jumped more than 55% this year to a market valuation of around $2tn.
The investment was unveiled alongside a 77% jump in second-quarter net profits, from $12.4bn to $22bn, driven by booming demand for chips powering AI data centres and smart devices. Speaking at the announcement, chief executive CC Wei said the new plants would depend on the “market situation” and did not give a timeline. “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.
“TSMC pledges $100bn more for US production, raising total to $265bn, in boost to Trump's manufacturing drive.”
The 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.”
Trump has long championed boosting US semiconductor production, especially after shortages during the Covid-19 pandemic exposed supply chain risks. He has previously attributed TSMC’s decision last year to expand its investments 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 domestic chip production.
The new investment raises a key question: can TSMC and the US deliver these plants quickly enough to meet soaring demand for advanced chips, or will “market situation” delays leave the country dependent on Asian fabrication for years to come?