WASHINGTON (AP) — Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest semiconductor manufacturer, is set to announce a $100 billion investment in the United States during a meeting between its CEO and President Donald Trump on Monday. A source familiar with the plans, who was not authorized to speak publicly, confirmed the development. TSMC, which produces chips for major companies like Apple, Intel, and Nvidia, had previously disclosed plans to invest over $65 billion in the U.S., including the construction of three plants in Arizona. Its first Arizona facility has already begun mass production of 4-nanometer chips. It remains unclear whether the newly announced $100 billion includes the previously committed $65 billion. TSMC confirmed the CEO’s meeting with Trump but provided no further details.
Last month, TSMC held its first-ever board meeting in the U.S., though no new investment announcements were made at the time. The White House has not yet commented on the matter. The planned investment aligns with efforts initiated under former President Joe Biden, who in 2022 signed the CHIPS and Science Act, a $280 billion law aimed at revitalizing U.S. chip manufacturing following disruptions caused by the COVID-19 pandemic. During the pandemic, overseas chip factories, responsible for the majority of processor production, shut down, causing ripple effects such as halted automobile production lines and contributing to inflation.
Trump has criticized the CHIPS Act and instead proposed imposing high tariffs on imported chips to encourage domestic manufacturing. He has also stated that companies like TSMC do not require federal tax incentives. Since taking office in January, Trump has hosted several business leaders at the White House to highlight investments aimed at boosting the U.S. economy. In January, he announced partnerships involving OpenAI, Oracle, and SoftBank for a $500 billion AI-related infrastructure investment. Additionally, DAMAC Properties from the UAE pledged $20 billion for AI data centers in the U.S. Last week, following a meeting with Apple CEO Tim Cook, Apple announced plans to invest over $500 billion in the U.S., including a new server factory in Texas.
The Wall Street Journal first reported the planned TSMC announcement. — news from The Associated Press