…Taiwanese semiconductor giant plans four more Arizona plants, lifting total US investment to $265bn
Taiwan Semiconductor Manufacturing Company (TSMC) has announced an additional $100 billion investment to expand its manufacturing operations in the United States, reinforcing America’s push to strengthen domestic semiconductor production.
The new commitment raises TSMC’s total planned investment in the US to $265 billion, making it one of the largest foreign investments in American manufacturing.
The announcement coincided with the company’s strong second-quarter financial results, as soaring demand for artificial intelligence (AI) chips continued to fuel record earnings.
TSMC Chief Executive C.C. Wei said the latest investment will likely fund the construction of four additional semiconductor fabrication plants in Arizona, adding to the eight facilities already planned or under construction.
While he did not provide a timeline for the expansion, Wei said construction would depend on market conditions.
“We believe this investment will help further develop the US semiconductor ecosystem, strengthen the supply chain and support an increasing number of high-tech, high-paying jobs in the United States,” he said.
The US Commerce Department said the investment is expected to create tens of thousands of American jobs.
TSMC also reported a 77 per cent year-on-year increase in second-quarter net profit, with earnings rising to $22 billion between April and June, compared with $12.4 billion during the same period last year.
The company has benefited from surging global demand for advanced chips used in AI data centres, smartphones and other high-performance computing devices.
TSMC manufactures cutting-edge semiconductors designed by technology giants including Nvidia and Apple, making it a critical player in the global AI supply chain.
The sustained demand has propelled TSMC to become Asia’s most valuable listed company, with its share price rising more than 55 per cent this year, giving it a market valuation of about $2 trillion.
The expansion represents another major win for President Donald Trump’s strategy of rebuilding semiconductor manufacturing in the United States.
Washington has prioritised domestic chip production since the COVID-19 pandemic exposed vulnerabilities in global supply chains.
Earlier this year, the United States agreed to reduce tariffs on Taiwanese goods to 15% under a broader trade and investment agreement aimed at encouraging large-scale semiconductor investments in America.
Commerce Secretary Howard Lutnick said the latest investment demonstrates growing confidence in the administration’s industrial policy.
“President Trump’s leadership is driving companies to invest in American manufacturing. TSMC’s additional $100 billion investment will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America,” he said.
The investment further cements Arizona’s position as a major semiconductor manufacturing hub and reflects growing efforts by governments and technology companies to diversify chip production beyond Asia.
As the world’s largest contract chipmaker, TSMC plays a pivotal role in supplying processors that power AI systems, consumer electronics, automobiles and advanced computing technologies, making its expansion a significant development for both the global technology industry and US economic strategy.
