TSMC pledges another $100bn to expand US chip production in Arizona

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has pledged a further $100 billion to expand its production in the United States, the BBC reported ([BBC](https://www.bbc.co.uk/news/articles/c62x8ldxr7eo)). The new plants would add to the eight facilities already being built or planned in Arizona.

TSMC chairman and CEO C.C. Wei did not give a timeline for the new plants, saying only that it would depend on the "market situation." "We believe this investment will help to further foster the development of the US semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States," Wei said.

The pledge lands squarely in Washington's push to boost domestic chip production, a priority since Covid-19 shortages exposed supply-chain vulnerabilities in components used in everything from cars to smartphones. President Trump has previously attributed an earlier TSMC expansion to his threats of tariffs on Taiwan and on the global semiconductor business.

The investment is tied to a January trade-and-investment understanding under which the US agreed to cut tariffs on goods from Taiwan to 15% in exchange for hundreds of billions of dollars in semiconductor investment ([BBC](https://www.bbc.co.uk/news/articles/c3dmpr37yxlo)). Welcoming the plans, Commerce Secretary Howard Lutnick said "President Trump's leadership is driving companies to invest in American manufacturing" and that the announcement would "create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America."

The commitment deepens a geopolitical reorientation of chip supply chains, concentrating more advanced manufacturing capacity on US soil while binding Taiwanese industry more closely to the American market. For TSMC, it means a far larger footprint in the United States just as governments worldwide treat semiconductors as a strategic asset.

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