Taiwan Semiconductor Manufacturing has announced an additional $100 billion investment in its US semiconductor manufacturing operations. This will bring its total planned investment to $165 billion. TSMC said in a press release that this expanded investment in Phoenix, Arizona, includes three new fabrication plants. This includes two advanced packaging facilities, and a major R&D center. In sum, the planned investment would be the largest single foreign direct investment in US history.
“Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality,” commented Dr. C.C. Wei, TSMC Chairman and CEO. He continued: “AI is reshaping our daily lives, and semiconductor technology is the foundation for new capabilities and applications. With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our US semiconductor manufacturing investment by an additional $100 billion, bringing our total planned investment to $165 billion.”
TSMC’s Arizona facility, which began volume production in late 2024, employs over 3,000 people on 1,100 acres. This latest investment aims to strengthen the US semiconductor manufacturing ecosystem and complete the domestic AI supply chain with the company’s first US advanced packaging operations.
Beyond Arizona, TSMC also operates a fab in Camas, Washington. Additionally, it operates design service centers in Austin, Texas, and San Jose, California.
2022 CHIPS and Science Act in doubt
US President Donald Trump wants the US Congress to rescind the 2022 CHIPS and Science Act. The law subsidizes foreign investment in US semiconductor manufacturing facilities. “We don’t have to give them money,” Trump said on March 5. He has previously threatened hefty tariffs for Taiwan chip manufacturers. Trump argues that avoiding the threatened tariffs would sufficiently motivate them to make major US investments. The CHIPS act includes agreed subsidies of up to $39 billion, including $6.6 billion for TSMC and $6.1 billion for Micron.
