WASHINGTON — Taiwan Semiconductor Manufacturing Co. (TSMC), a leading semiconductor manufacturer, plans to invest $100 billion in the United States, as announced by President Donald Trump on Monday. This investment comes in addition to the company’s previously announced plans to invest $65 billion.
TSMC produces chips for companies including Apple, Intel, and Nvidia. They have begun construction on three plants in Arizona after the Biden Administration offered billions in subsidies. The first factory in Arizona has started mass production of its 4-nanometer chips.
Trump, who appeared with TSMC’s chief executive officer C. C. Wei at the White House, called the investment a “tremendous move” and stressed its importance for economic security.
The investment will go towards three more chip manufacturing plants, along with two packaging facilities, in Arizona. Wei said this will create thousands of high-paying jobs.
The $165 billion investment comes after President Joe Biden signed a $280 billion law, the CHIPS and Science Act, in 2022, to boost chip manufacturing in the U.S. after the COVID-19 pandemic disruption.
During the pandemic, many chip factories, especially those overseas, shut down. This caused wider problems such as car factory production lines shutting down and fueled inflation.
Trump has taken a different approach from Biden, threatening to impose high tariffs on imported chips.
When asked about the impact of the investment if China were to isolate or seize Taiwan, Trump said that it wouldn’t minimize the impact as that would be a catastrophic event.
Taiwan, which broke away from mainland China in 1949, is claimed by Beijing. The Taiwanese de-facto embassy in the US, the Taipei Economic and Cultural Representative Office, said they are glad to see Taiwanese businesses expand their investments in the U.S.
Bonnie Glaser, managing director of the Indo-Pacific program at German Marshall Fund of the U.S., said the increased investment pledge by TSMC will help keep the U.S.-Taiwan relationship strong.
Trump has not indicated his stance on U.S. support for Taiwan’s security and has said Taiwan should pay the U.S. for its military defense.
The president has been hosting business leaders at the White House to highlight investments that demonstrate his leadership’s positive impact on the U.S. economy. He has also used the threat of tariffs to push for investments.
In January, Trump announced a $500 billion partnership for infrastructure related to artificial intelligence. Also, in January, a $20 billion investment by DAMAC Properties in the United Arab Emirates was announced for data centers linked to AI.
Last week, after Apple CEO Tim Cook met with Trump, the company said it plans to invest more than $500 billion in the U.S. over the next four years.
The Wall Street Journal first reported the planned announcement.
Source: https://time.com/7264078/tsmc-taiwan-invest-100-billion-us-semiconductor-chips-manufacturing-trump/
