Taiwanese computer chip giant TSMC pledged $100 billion to boost production in the US as part of a four-year project announced alongside President Trump on Monday.
TSMC, which supplies powerful chips needed for artificial intelligence to major firms like Apple and Nvidia, will build five new plants in Arizona as part of the deal. The company has already earmarked $65 billion for three factories in the state, the first of which began mass production last year.
Trump said TSMC’s plans would create “many thousands” of high-paying jobs and described the production of AI chips within the US as a “matter of economic security” for the country.
“The most powerful AI chips in the world will be made right here in America,” Trump said at press conference at the White House with TSMC CEO CC Wei.
Wei said the five new plants would include three chip manufacturing facilities and two packaging sites.
The move by the world’s largest semiconductor company comes amid Trump’s threats to impose harsh tariffs on computer chips and other key products while seeking to secure better deals for the US economy.
In the days prior to TSMC’s announcement, Trump floated a potential “25% and higher” tariff on chips.
“We’re pleased to have an opportunity to meet with the President and look forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers,” TSMC said in a statement on the announcement.
Last week, Apple pledged to invest more than $500 billion toward the US economy and hire 20,000 new employees as part of its “largest-ever spend commitment.” The iPhone maker’s plans include a new manufacturing facility in Houston and a manufacturing academy in Detroit.
Chip supplier Nvidia also acknowledged last week that Trump’s tariffs and potential implementation of new export controls on computer chips were “a little bit of an unknown” for the sector.
US officials have sought to jumpstart domestic chip production amid rising tensions with China. Last year, the Commerce Department under President Biden unveiled $6.6 billion in subsidies to bolster TSMC’s production efforts in Phoenix.
In 2022, Congress passed the CHIPS and Science Act, which earmarked $52.7 billion in federal subsidies toward computer chip research and production. Trump has been critical of the law, leaving its future uncertain.
TSMC is the latest of several tech giants that have announced major long-term investments in the US economy since Trump took office in January.
Apple’s announcement came shortly after Trump met with CEO Tim Cook at the White House. The president said Apple was shifting more production to the US in part because “they don’t want to be in the tariffs.”
Weeks earlier, Trump stood alongside OpenAI CEO Sam Altman, Oracle executive chairman Larry Ellison and Softbank CEO Masayoshi Son to unveil the $500 billion “Stargate” project – a joint venture to build data centers and other infrastructure needed for advanced artificial intelligence within the US.
