US president Donald Trump has announced that Taiwan Semiconductor Manufacturing (TSMC) will invest $100 billion in US chip production. This was reported to The Wall Street Journal. This increases the Taiwanese company’s total US investment to $165 billion. The money will be used to build five new factories in Arizona.
Trump called this a “great move” by “the most powerful company in the world”. The investment is in line with the Trump administration’s ambition to make the US a world leader in artificial intelligence. Last month, Trump announced a billion-dollar AI infrastructure project involving Oracle, OpenAI and SoftBank, among others called Stargate. He has repeatedly advocated the return of semiconductor manufacturing to the US for economic growth and national security.
Remarkably, the investment comes despite Trump’s previous criticism of Taiwan. He accused the country of undermining the US chip industry and supported import tariffs on semiconductors. Still, TSMC expressed optimism about working with the US government early this year.
TSMC began its US expansion in 2020 with a $12 billion investment in a first plant in Arizona. This amount was later increased to $65 billion for the construction of a third plant. In addition, the company received a $6.6 billion subsidy from the US Dept of Commerce.
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