Taiwan Semiconductor Manufacturing Company (TSMC) is significantly expanding its presence in the United States, announcing an additional $100 billion investment in domestic semiconductor production. This move builds upon the company’s existing $65 billion commitment in Arizona, reinforcing its efforts to establish a stronger manufacturing footprint outside Taiwan amid geopolitical uncertainty.
The latest investment will finance the construction of three fabrication plants, two advanced packaging facilities, and a dedicated research and development center. With a total U.S. investment now reaching $165 billion, TSMC’s Phoenix expansion stands as the largest foreign direct investment in American history. The company’s growing Arizona hub is expected to generate tens of thousands of high-tech jobs, while also supporting 40,000 construction roles over the next few years.
TSMC's decision aligns with the U.S. government's push for semiconductor self-sufficiency, particularly as demand for AI-driven computing and advanced silicon continues to surge. Washington has actively encouraged companies to bolster domestic production, including awarding TSMC a $6.6 billion grant under the CHIPS and Science Act to help accelerate its U.S. expansion. The company’s first Phoenix-based facility is already operational, producing 4-nanometer chips, a key component in high-performance electronics. Two additional factories are still under development and are set to manufacture some of the world’s most sophisticated semiconductors, including 2-nanometer chips.
TSMC’s announcement comes amid broader shifts in the tech industry, with leading companies ramping up U.S. manufacturing investments. Apple recently committed over $500 billion toward domestic technology production, including chip development at TSMC’s facilities. Meanwhile, a consortium of tech firms—featuring Oracle and OpenAI—has pledged a staggering $500 billion toward AI and semiconductor manufacturing under the ambitious Stargate project.
Adding further intrigue to the semiconductor landscape, reports have emerged that TSMC is evaluating a potential move to acquire part of Intel’s struggling chip production business. Discussions about this possibility were reportedly encouraged by U.S. officials, signaling Washington’s strategic interest in fortifying America’s semiconductor capabilities.
As global demand for advanced chips escalates, TSMC’s deepened U.S. investment underscores a critical shift in the tech industry—one that is rapidly reshaping the future of semiconductor manufacturing and AI-driven innovation.
