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The Taiwan Semiconductor Manufacturing Company (TSMC), a major semiconductor manufacturer, announced its $100 billion investment in the US on Monday.
TSMC, a Taiwan-based chip maker that builds advanced semiconductors used in smartphones and artificial intelligence (AI) models, announced its investment following a meeting with the president Donald Trump.
The investment is expected to focus on sophisticated semiconductor manufacturing facilities over the next four years.
TSMC previously invested in its Arizona chip factory with its first $12 billion investment, and last April announced an additional $25 billion investment to add a third factory to its Arizona facility by 2030 to add a total investment to $65 billion.
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TSMC announces $100 billion investment in US chip manufacturing facilities (Photographer: Getty Images/Mik Kychen via Getty Images/Bloomberg)
The company also received grants of up to $6.6 billion from the Arizona facility's chips law, as well as other federal funds aimed at strengthening domestic semiconductor manufacturing in the United States.
“The world's most powerful AI chips are made in the US and will be the majority of the chips his company has made,” Trump said he will mark the deal at the White House event. “This $100 billion new investment will build five state-of-the-art manufacturing facilities in the large state-of-the-art manufacturing facility that Arizona just discussed, creating thousands of jobs (thousands of jobs and highly paid jobs). In total, today's announcement will bring Taiwan's semiconductor investment to around $165 billion.”
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President Donald Trump shakes hands with TSMC CEO CC Wei. (Andrew Harnik / Getty Images / Getty Images)
“Semiconductors are the backbone of the economy of the 21st century, and without semiconductors there is no economy that will drive everything from AI to automobiles to advanced manufacturing. And we need to be able to build the chips and semiconductors we need in American factories with American skills and the American workforce,” Trump added.
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Trump and Way announce TSMC's new $100 billion investment in the US (Andrew Harnik / Getty Images / Getty Images)
TSMC CEO CC Wei said the company's vision is a reality at an Arizona facility with 3,000 employees “producing the most sophisticated chips in US soil.”
“We are extremely pleased to announce that we will invest an additional $100 billion in the wake of the success of our initial plan,” Wei said, adding that we will be building additional chip manufacturing facilities in addition to the packaging facilities.
“For this, all the investments, $165 billion, are expected to generate thousands of high-paying jobs. And most importantly, we are trying to produce many AI chips. We are trying to produce many chips to support the progress of AI and support the progress of smartphones,” he said.
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Although TSMC has historically maintained the production of Taiwan's most sophisticated chips, it is unclear at this time whether some of its production will move to the US with new investments.
Reuters contributed to this report.
