Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest $100 billion in U.S.-based chip production over the next four years, according to sources familiar with the matter. President Donald Trump is expected to announce the initiative later on Monday.
The investment will fund cutting-edge chip-making facilities, advancing long-standing U.S. efforts to revitalize domestic semiconductor manufacturing—an industry that has largely shifted to Asia over the past few decades.
TSMC, the world’s largest contract chipmaker, first established a foothold in Arizona in 2020 with a $12 billion investment to build a semiconductor factory. Since then, its ambitions for the site have expanded significantly, with plans for two additional factories and an increased total investment of $65 billion. The company’s first U.S. factory began mass production late last year.
This latest expansion signals a broader reassessment of semiconductor production—not just in the U.S., but across the global tech supply chain.
TSMC currently manufactures its most advanced chips exclusively in Taiwan, producing semiconductors critical for AI systems, smartphones, and high-performance computing.
Since the Biden administration, U.S. officials have expressed concerns over TSMC’s near-monopoly on leading-edge chip production and have pushed for more onshore manufacturing—including advanced chip packaging facilities.
Advanced chip packaging is crucial for AI-related semiconductors, as it:
✔ Enhances performance by integrating multiple semiconductor components
✔ Reduces size for more compact devices
✔ Improves power efficiency
✔ Enables faster data transfer—a key requirement for AI applications
As the global demand for AI-driven technology surges, the U.S. aims to strengthen its domestic chip supply chain and reduce dependence on foreign manufacturers.
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