The $100bn investment is seen as a counter to rising chip tariffs and brings TSMC’s total investment in the US to over $165bn.
The company’s CEO C.C. Wei announced the plan alongside President Donald Trump and said that the funds would be used to support five advanced fabs in the country, including those in Arizona, creating thousands of high-paying jobs.
The expansion includes three new fabs, two advanced packaging facilities, and a major R&D centre.
“We need to produce the chips and semiconductors we rely on right here at home - it’s a matter of national security,” Trump said. The president went on to say that in the light of political tensions with China over Taiwan the investment would give the US leverage in this crucial industry. “If something happens to Taiwan, this will make a big difference,” he added.
TSMC’s new investments will require approval from Taiwan’s government, which has pledged a careful review of advanced chip exports.
At the end of last year, the Biden administration approved a $6.6bn subsidy under the CHIPS Act for TSMC’s Phoenix plant. The $100 billion plan qualifies for a 25% tax credit under the 2022 law.
TSMC’s first Arizona fab has begun mass production of 4nm chips in 4Q24, while the second fab is expected to be operational by 2028, and utilises more advanced nodes such as 3nm, 2nm, and A16 based on customer demand.
According to reports TSMC may look to accelerate its plans for a third fab in Arizona, with groundbreaking expected in June.
Concerns have been expressed that this investment could impact others being made by TSMC in both Taiwan and Japan, although this has been denied by the company.
This announcement, however, will see TSMC spend about $25 billion per year, with up to $42 billion planned for 2025 which would amount to over half of its projected capex, suggesting a significant shift to a more US oriented growth strategy.
