TSMC to invest additional $100B in U.S. chips manufacturing
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The TSMC facility in Phoenix, in 2023. Photo: Caitlin O'Hara for The Washington Post via Getty Images
Taiwan Semiconductor Manufacturing Co. will invest an additional $100 billion in U.S. chips production, the company and President Trump announced Monday, adding to its existing $65 billion commitment in Arizona.
Why it matters: TSMC, the world's leading chips manufacturer, wants to diversify its semiconductor manufacturing footprint outside of the political volatility in Taiwan amid tensions with China.
- It's also part of the bipartisan U.S. national security push to increase domestic chips production and accelerate the AI economy.
Driving the news: The new investment will fund three fabrication plants, two advanced packaging facilities and a research and development center, TSMC said in a press release.
- With a total price tag of $165 billion, TSMC's Phoenix commitment represents the largest foreign direct investment in U.S. history, according to the company.
- The expansion is expected to support 40,000 construction jobs over the next four years and "tens of thousands of high-paying, high-tech jobs" moving forward.
Catch up quick: TSMC previously committed to three plants in north Phoenix.
- The first began "high-volume" production of 4-nanometer chips (the kind used in smartphones and other popular electronics) late last year. It marked the first time chips with that level of sophistication were manufactured on U.S. soil, former U.S. Commerce Secretary Gina Raimondo said last month.
- Two other factories are under construction. Once operational, they will produce the world's most advanced semiconductors, including the cutting-edge 2-nanometer chip, the company said.
- The Biden administration finalized a $6.6 billion grant agreement with TSMC last November as part of the CHIPS and Science Act.
Zoom out: Monday's announcement also comes amid reports that TSMC is weighing a bid to acquire part of Intel's struggling chips production.
- TSMC was considering the move "at the request of Trump administration officials," Bloomberg reported in February.
State of play: TSMC's announcement is the latest in a series of Big Tech investments in U.S. manufacturing capacity.
- Apple last week announced plans to invest more than $500 billion in the U.S. over the next four years, including the production of advanced silicon at TSMC's Phoenix plants.
- And a coalition of tech companies including Oracle and ChatGPT creator OpenAI announced plans to invest $500 billion over the next several years in U.S. production through the Stargate project.
