- TSMC is investing $100 billion in U.S. semiconductor manufacturing, with most of it planned for Arizona.
- Trump emphasized the move as a national security win, aiming to reduce reliance on Taiwan for chip production.
- Tariffs played a key role in TSMC’s decision, allowing the company to avoid hefty import fees by building in the U.S.
President Trump made waves on Monday, announcing that Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s biggest chip makers, is gearing up to invest a staggering $100 billion into U.S. manufacturing.
Standing alongside TSMC’s CEO, C.C. Wei, in the White House’s Roosevelt Room, Trump unveiled the ambitious plan, emphasizing both economic and national security benefits.
“Today, Taiwan Semiconductor is committing at least $100 billion in new capital to the United States, building state-of-the-art semiconductor manufacturing facilities,” Trump declared. “I hear most of it’s going to Arizona, which is a great state. I like it because I won it.”
TSMC’s Massive Investment and the Role of Tariffs
The announcement comes as Trump continues his push to ramp up domestic chip production, framing it as a matter of national importance. He labeled TSMC “the most powerful company in the world” and stressed the importance of keeping semiconductor manufacturing within U.S. borders.
The Wall Street Journal first reported on TSMC’s investment, noting that the company had previously been awarded $6.6 billion under the Biden-era CHIPS and Science Act of 2022 to build its first U.S. plant in Arizona. But with Trump threatening new tariffs on imported chips, manufacturing in the U.S. suddenly looks far more attractive.
Commerce Secretary Howard Lutnick reinforced that idea, pointing out how tariffs played a major role in TSMC’s decision. “Under Biden, TSMC got a $6 billion grant, and they used it to build $65 billion worth of plants. Now you’re seeing the power of Trump’s presidency—TSMC is bringing $100 billion to America because they know they can avoid tariffs by building here.”
Why Semiconductor Chips Matter
Semiconductors are the backbone of modern technology, tiny but essential to everything from smartphones to cars. With artificial intelligence exploding in demand, the need for high-powered chips has skyrocketed, making chip production a critical industry.
“Semiconductors are the backbone of the 21st-century economy,” Trump said. “Without them, there is no economy—AI, automobiles, manufacturing, all of it depends on these chips.”
Currently, Taiwan dominates global semiconductor production, and both the Biden and Trump administrations have identified bringing more of that industry to the U.S. as a matter of national security.
“We must be able to build the chips and semiconductors we need right here, in American factories, with American skill and American labor,” Trump emphasized. “Taiwan has had a monopoly on this market for too long, and we’re changing that.”
