HSINCHU, TAIWAN —TSMC (NYSE: TSM), a Taiwanese manufacturer of semiconductors, has announced plans to invest at least $100 billion in the United States, which would bring the company’s total investment in its U.S. manufacturing base to $165 billion.
As part of the new round of investment, TSMC plans to develop three more fabs (i.e. manufacturing plants), two advanced packaging facilities and a major research-and-development (R&D) center in Arizona. Once fully realized, the project will be solidified as the “largest single foreign direct investment in U.S. history,” according to TSMC.
The construction timeline was not disclosed, but U.S. President Donald Trump and TSMC CEO C.C. Wei announced the investment at a press conference on Monday, with Trump saying the investment will be made “over the next short period of time.”
TSMC’s expanded investment is expected to support 40,000 construction jobs over the next four years and create tens of thousands of high-tech jobs in advanced chip manufacturing and R&D, which Trump said would range between 20,000 and 25,000 jobs. Yahoo! Finance reported that Intel is currently the only computer chip manufacturer with a dedicated R&D center in the United States.
TSMC is currently building out its 1,100-acre campus in north Phoenix, dubbed TSMC Arizona, which currently employs more than 3,000 people. The first fab at TSMC Arizona has been in volume production since late 2024, with the second to be operational by 2028. Yahoo! Finance further reports that construction has not yet begun on the third fab, which TSMC announced last April. TSMC is funding the third fab in part with $6.6 billion in direct funding through the CHIPS and Science Act, which former President Joe Biden signed into law in 2022.
The new investment is expected to drive more than $200 billion of indirect economic output in Arizona and across the country in the next decade, according to TSMC. The company expects to create hundreds of billions of dollars in semiconductor value for AI (artificial intelligence) and other high-tech applications through the new expansion.
“AI is reshaping our daily lives, and semiconductor technology is the foundation for new capabilities and applications,” said Wei. “We are going to produce many chips to support AI’s progress and to support the smartphone’s progress.”
“The most powerful AI chips in the world will be made right here in America,” said Trump.
Along with the TSMC Arizona campus, the company currently operates a fab in Camas, Wash., and design service centers in Austin and San Jose, Calif. TSMC’s stock price closed on Monday, March 3 at $172.97 per share, up from $138.26 a year ago, a 25 percent increase.
— John Nelson