Washington — President Trump declared on Monday that a prominent Taiwanese semiconductor company intends to invest $100 billion into new manufacturing facilities in the United States.
Taiwan Semiconductor Manufacturing Company, commonly known as TSMC, ranks among the largest semiconductor chip manufacturers globally and plans to undertake this significant investment over the forthcoming years. The announcement was made by Mr. Trump in the Roosevelt Room of the White House, accompanied by the company’s CEO, C.C. Wei.
“Today, Taiwan Semiconductor is revealing their commitment to invest at least $100 billion in new capital in the United States over a short period to establish state-of-the-art semiconductor manufacturing plants,” Mr. Trump stated. “I believe most of this will be in Arizona, which I’ve heard is a great state. I have a fondness for it because I won there.”
The president referred to TSMC as the “most powerful company in the world” and emphasized that this economic development announcement is crucial for “economic security” and “national security” for the country.
The Wall Street Journal was the first to cover the investment commitment. TSMC was assured $6.6 billion in funding under the Biden-era CHIPS and SCIENCE Act of 2022 and has already made plans for its inaugural U.S. facility in Arizona.
This anticipated announcement emerges amid Mr. Trump’s threats to impose tariffs on semiconductor chip imports, tariffs that TSMC could circumvent by producing the chips domestically. The president has also suggested fast-tracking permits for companies investing a minimum of $1 billion in the U.S. On Monday, Mr. Trump highlighted that if the company were to produce chips in Taiwan and export them to the U.S., they would incur 25% tariffs.
During his remarks at the White House, Commerce Secretary Howard Lutnick attributed the TSMC announcement to the influence of tariffs.
“During the Biden administration, TSMC received a grant of $6 billion, which prompted them to invest $65 billion. Therefore, America contributed 10% of the funding necessary for them to set up operations here. Now we are witnessing the impact of Donald Trump’s presidency,” Lutnick commented. “TSMC, the premier chip manufacturer worldwide, is arriving in America with a $100 billion investment, made possible because they can avoid tariffs.”
Semiconductor chips are small yet vital components in modern technology, consisting of tiny silicon pieces that contain electronic circuits. These chips are integral to everything from smartphones to vehicles, and their demand has surged in recent years due to the rapid growth of artificial intelligence, which demands significant computing power.
“Semiconductors form the backbone of the 21st-century economy,” Mr. Trump stated on Monday. “Without semiconductors, our economy cannot function, as they power everything from AI to cars to advanced manufacturing.”
The majority of semiconductor chips are produced in Asian countries, with Taiwan leading the industry, and the Trump administration is keen to attract more manufacturing to the U.S. Both the Biden and Trump administrations have recognized the importance of enhancing domestic chip manufacturing as a national security concern.
“We must be capable of producing the chips and semiconductors we need right here in American factories, utilizing American skills and labor,” Mr. Trump asserted. “And that is precisely what we are accomplishing. Taiwan essentially has a monopoly in this market.”
