Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, said it would invest $100 billion in the United States. The move comes as the Trump administration pushes for increased investment in American manufacturing and threatens to impose tariffs on chip imports. TSMC’s large-scale investment raises questions about how South Korean chipmakers Samsung Electronics and SK Hynix will respond.
Standing alongside U.S. President Donald Trump at the White House, TSMC Chairman C.C. Wei announced the chipmaking giant would invest $100 billion to build factories in the U.S. TSMC had previously pledged $65 billion to build two advanced chipmaking fabrication plants in Arizona.
The latest plan involves building three more chipmaking and two advanced packaging facilities, bringing TSMC’s total investment in the U.S. to $165 billion.
“This is a tremendous move by the most powerful company in the world. It’s a matter of economic security, it’s also a matter of national security for us,” Trump said. He added that the investment would create 20,000-25,000 jobs and “boost America’s dominance in artificial intelligence and beyond.”
TSMC’s investment is closely tied to the Trump administration’s aggressive tariff policies. Trump recently signaled plans to impose a minimum 25% tariff on chip imports. Secretary Howard Lutnick reiterated this point at the news conference. “[Companies] are coming here in because they want to avoid the tariffs,” he said.
Analysts say TSMC has made an exception to its “Taiwan First” pledge because its biggest customers, such as Nvidia and Intel, are based in the U.S., and higher tariffs on chip imports could undermine the company’s competitive edge in the U.S. By increasing U.S. production, TSMC is attempting to secure its foothold in the American market.
TSMC’s announcement is adding pressure on Samsung Electronics and SK Hynix. Samsung has promised to invest over $37 billion to build a chipmaking plant in Taylor, Texas. SK Hynix has pledged over 3.87 trillion won to set up a semiconductor packaging facility in West Lafayette, Indiana.
“Samsung Electronics and SK Hynix are likely to consider expanding investment in the U.S.,” said Kim Hyung-jun, head of the Next-Generation Intelligent Semiconductor Foundation.
