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Investing.com -- Taiwan Semiconductor Manufacturing (NYSE:TSM) confirmed a $100 billion investment in U.S. chip-making facilities over the next four years, as announced by U.S. President Donald Trump on Monday.
The investment will expand TSMC’s presence in Arizona, where the company already operates a $65 billion manufacturing hub. The company plans to build three additional fabrication factories, two packaging factories, and a R&D center.
Trump spoke of the investment, claiming it will directly produce 20,000-25,000 high-paying jobs to the American people.
TSMC is the world’s largest contract chip maker, supplying advanced AI processors and smartphone chips.
While it has traditionally kept its most sophisticated factories in Taiwan, the U.S. has been pushing the company to shift more production, particularly in advanced chip packaging, which is crucial for AI applications.
The U.S. government has supported TSMC’s expansion through the 2022 Chips Act, which allocated billions in subsidies. TSMC has already been awarded $6.6 billion in grants under the program.
Trump has long advocated for more U.S.-based chip production, though he has criticized the Chips Act, arguing that tariffs would be a better incentive.
“We have to have chips made in this country,” he said in February.
The announcement follows a broader push by U.S. officials to reduce reliance on Asian semiconductor manufacturing, citing national security and economic stability.
(Sam Boughedda also contributed to this article)