Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading contract chipmaker, announced plans to invest $100 billion in the United States and build five new factories in the coming years. The announcement came during a meeting at the White House on Monday, where TSMC CEO CC Wei and former President Donald Trump discussed the company’s expansion. These investments are seen as a significant step toward rebuilding America’s semiconductor industry and reducing reliance on foreign-made chips.
With national security at stake, President Trump emphasized the necessity of domestic chip production. "We must build the chips and semiconductors we need right here," Trump stated. He warned that America’s dependence on Asian-made semiconductors poses risks to the economy and military readiness. TSMC supplies major U.S. firms such as Apple, Nvidia, and Intel, making its partnership vital for securing the nation’s technological edge.
TSMC’s $100 billion commitment follows a previous announcement to increase U.S. investments by $25 billion, bringing the total planned outlay to $65 billion and adding a third Arizona factory by 2030. These moves align with efforts to enhance domestic production and counter China’s dominance in the tech supply chain. The COVID-19 pandemic exposed vulnerabilities in global semiconductor manufacturing when overseas factory shutdowns caused disruptions in industries like automotive and electronics, further fueling inflation.
While the Biden administration has supported semiconductor growth through subsidies under the CHIPS and Science Act, Trump has taken a different approach. He criticized federal tax incentives for companies like TSMC and instead proposed imposing high tariffs on imported chips to drive local manufacturing. Trump’s stance highlights a shift toward economic nationalism, focusing on bolstering American industries without excessive reliance on government handouts.
In addition to TSMC, other businesses are pledging significant investments in the U.S. economy. Trump touted these commitments as part of his administration’s pro-business agenda. For instance, Apple announced a $500 billion investment over four years, while international players like Emirati billionaire Hussain Sajwani and SoftBank promised multibillion-dollar contributions. Trump’s leadership, marked by a focus on tax cuts and deregulation, continues to attract investment and bolster job creation.
However, the Biden administration has taken credit for semiconductor progress, with the Department of Commerce persuading five leading-edge chipmakers to establish U.S. factories. Commerce Secretary Howard Lutnick, appointed under Trump, called the initiative "an excellent down payment" for revitalizing the industry but has delayed approving grants, citing a need for further analysis.
Despite bipartisan acknowledgment of the semiconductor industry’s importance, disagreements persist over the best path forward. Trump’s emphasis on tariffs and private-sector-driven growth contrasts with Biden’s subsidy-based approach. Nonetheless, TSMC remains optimistic about its role in strengthening the U.S. tech sector, stating a commitment to innovation and collaboration with American partners.
As TSMC moves ahead with its historic investment, the debate over how best to secure America’s technological future continues. What do you think? Should the U.S. rely on subsidies, tariffs, or a mix of both to rebuild its semiconductor industry? Share your thoughts in the comments below!
