[News] TSMC Scales up U.S. Investment with $100B More, Adding Five New Chip Facilities in Coming Years

Amid rumors of acquiring Intel’s fabs, TSMC is ramping up U.S. investment to counter rising chip tariffs. According to Reuters and TSMC’s press release, the company will invest an additional $100 billion to build five more semiconductor plants in the coming years.

CEO C.C. Wei announced the plan alongside U.S. President Donald Trump at the White House on March 3.

President Trump noted in a White House announcement that this brings TSMC’s total investment in the U.S. to reach $165 billion. The funds will support five advanced fabs in the country, including those in Arizona, creating thousands of high-paying jobs, he claimed.

In detail, the expansion includes three new fabs, two advanced packaging facilities, and a major R&D center, as per Reuters.

“We need to produce the chips and semiconductors we rely on right here at home—it’s a matter of national security,” Trump said.

TSMC’s $100B Plan Secures 25% Tax Credit Under 2022 Law

Notably, when asked whether TSMC’s new investment could lessen the impact on the U.S. if China tries to isolate or take over Taiwan, Trump said the investment gives the U.S. leverage in this crucial industry, ensuring a significant share remains stateside. “If something happens to Taiwan, this will make a big difference,” he added, as noted in a Central News Agency (CNA) report.

However, TSMC’s new investments require approval from Taiwan’s government, which has pledged a careful review of advanced chip exports, as per Bloomberg.

In November, 2024, the Biden administration approved a $6.6 billion subsidy under the CHIPS Act for TSMC’s Phoenix plant. The $100 billion plan qualifies for a 25% tax credit under the 2022 law, as per Reuters.

During Trump’s first term, his team attracted TSMC to the U.S. over national security concerns. When TSMC announced its Arizona plant in 2020, officials said it would power AI and F-35 jets, the Bloomberg report indicates.

Arizona Expansion Accelerates

TSMC’s first Arizona fab has begun mass production of 4nm chips in 4Q24, while the second fab is expected to be operational by 2028, utilizing more advanced nodes such as 3nm, 2nm, and A16 based on customer demand.

According to a report by Taiwan’s Central News Agency (CNA), market sources indicate that TSMC may accelerate its plans for a third fab in Arizona, with groundbreaking expected in June alongside an official ceremony. TSMC stated that the project is progressing as planned.

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(Photo credit: The White House)