TSMC to invest $100 billion in U.S. chip manufacturing expansion

President Donald Trump announced that Taiwan Semiconductor Manufacturing Company (TSMC) is increasing its investment in the United States to $100 billion. This move expands on the company’s existing commitment, pushing its total investment in the country to $165 billion.

The Stargate Project is a U.S.-based artificial intelligence (AI) company founded through a collaboration between OpenAI, SoftBank, Oracle, and MGX. The company has announced plans to invest up to $500 billion in AI infrastructure within the United States by 2029.

The announcement comes a little over a month after President Trump unveiled the Stargate Project, a $500 billion AI initiative involving OpenAI, SoftBank, Oracle, and MGX.

Taiwan Chip Giant TSMC Pledges to Invest $100B in the US Amid Trump’s Tariff Threat

The funds will be used to build five advanced semiconductor fabrication facilities in Arizona, creating thousands of high-paying jobs. TSMC CEO C.C. Wei highlighted the significance of this expansion, stating that the company aims to strengthen the U.S. chip industry while reducing dependence on overseas manufacturing. The decision comes amid ongoing geopolitical concerns and a push for supply chain resilience.

This investment aligns with the CHIPS and Science Act, a $280 billion initiative signed into law in 2022. The legislation was introduced to boost domestic semiconductor production and cut reliance on foreign supply chains. By increasing its footprint in the U.S., TSMC is expected to play a major role in advancing artificial intelligence and other high-tech industries.

Trump framed the announcement as a victory for American manufacturing and job creation. Industry experts see it as a strategic shift in the global semiconductor landscape, positioning the U.S. as a more significant player in chip production. The expansion also strengthens ties between the U.S. and Taiwan at a time when the semiconductor supply chain remains a critical issue for national security and economic stability.

With this investment, Arizona is set to become a key hub for chip manufacturing, attracting talent and innovation to the region. The first facilities are expected to be operational within the next few years, with the full project rolling out in phases. As TSMC scales its operations, the impact on technology sectors ranging from consumer electronics to defense is expected to be significant.

Trump’s announcement signals continued efforts to bolster U.S. manufacturing and compete with other global semiconductor leaders. The investment is likely to drive further discussions on government support for domestic chip production and long-term technological independence.