TSMC Pledges $100B for US Chip Plants, Eyes 20,000 New Jobs

President Donald Trump announced Monday alongside TSMC CEO C.C. Wei at the White House that Taiwan Semiconductor Manufacturing Company will invest an additional $100 billion in U.S. manufacturing facilities.

"This will create hundreds of billions of dollars in economic activity and boost America's dominance in artificial intelligence and beyond," Trump said during a press conference, adding the expansion would generate between 20,000-25,000 jobs.

The investment builds on TSMC's existing $65 billion commitment for Arizona operations, creating what the company has tagged as "the largest single foreign direct investment in U.S. history", totaling $165 billion.

Over the next four years, TSMC will build three additional chip fabrication plants beyond the three already underway, two advanced packaging facilities and a research center at the Arizona complex.

TSMC began high-volume production of 4-nanometer chips at its first Arizona facility in late 2024, marking the first time chips of this grade were made on U.S. soil. The company says its Arizona fab employs over 3,000 people across its 1,100 acres of land.

The facilities will produce cutting-edge chips, TSMC said, including future 2-nanometer semiconductors crucial for next-generation AI systems, mobile compute systems, crypto mining equipment, and other critical infrastructure.

"Semiconductors are the backbone of the 21st century economy,” Trump said. “Without the semiconductors, there is no economy, powering everything from AI to automobiles to advanced manufacturing."

The move comes amid intensifying U.S.-China competition on the tech front, with the growing recognition of semiconductors as critical infrastructure for national security and economic stability.

The investment also represents a strategic repositioning for TSMC, potentially insulating it from disruptions caused by U.S.-China tensions while securing its position in the critical American market.

TSMC shares fell 4.2% to $172.9 on Monday, underperforming the tech-heavy Nasdaq 100’s 2.2% decline to 20,425.

Nvidia, another major chip manufacturer, plummeted 8.7% to $114.06 on the day, as a broader AI sector slump, driven by tariff concerns, continued to weigh on investor confidence.

Edited by Sebastian Sinclair