Key facts
- TSMC will invest an additional $100 billion in the U.S., raising its total commitment to $165 billion.
- The expansion includes three new fabrication plants, two advanced packaging facilities, and an R&D center in Arizona.
- The investment is expected to create 40,000 construction jobs and tens of thousands of high-tech jobs.
- TSMC's chips are used in smartphones, car consoles, and AI servers.
- The expansion is projected to generate over $200 billion in indirect economic output in the U.S. over the next decade.
Taiwan Semiconductor Manufacturing Co. (TSMC) announced plans to invest an additional $100 billion in the United States, significantly expanding its presence with new cutting-edge chipmaking facilities and advanced packaging plants in Arizona. This move brings TSMC's total commitment in the U.S. to $165 billion and is driven by the surging demand from the artificial intelligence sector.
During a meeting with U.S. President Donald Trump, TSMC CEO CC Wei detailed the expansion, which includes the construction of three additional fabrication plants, two advanced packaging facilities, and a major research and development center. President Trump emphasized the investment's role in boosting America's dominance in AI and the critical importance of domestic semiconductor manufacturing.
The expansion is anticipated to create approximately 40,000 construction jobs over four years and tens of thousands of high-tech positions in chip manufacturing and R&D. TSMC's existing facility in Phoenix, Arizona, which has been operational since late 2024 and employs over 3,000 people, serves as the foundation for this growth. The company's chips are integral to various technologies, including smartphones, automotive systems, and AI servers.
This substantial investment is projected to generate more than $200 billion in indirect economic output across Arizona and the U.S. within the next decade. In contrast to TSMC's expansion, Microchip Technology has announced plans to cut around 2,000 jobs, or about 9% of its workforce, due to decreased demand from the automotive industry, alongside the closure of a factory in Arizona and layoffs in the Philippines.