TSMC Plans $100 Billion U.S. Investment

TSMC's Q3 profit falls 24.9% as capacity struggles to meet demand | FMT

#tsmc announced a $100 billion investment in the U.S., including five new chip plants over the next few years. The move aims to boost U.S. chip production and reduce reliance on Taiwan amid rising tensions with China.

Donald Trump called the investment critical for national security, saying the U.S. must produce key chips domestically.

The expansion will include three chip factories, two advanced packaging plants, and a new R&D center, creating about 40,000 construction jobs over four years.

TSMC’s Arizona plant faced delays and higher costs than its Taiwan factories.

Market & Industry Reaction

TSMC’s stock fell 2% in Taiwan after the news. Analysts say higher costs in the U.S. remain a concern.

TSMC is a key supplier for Nvidia, Qualcomm, and AMD. Bringing production closer to these companies could reduce supply chain risks.

TSMC may also play a role in reviving Intel, with reports of talks about taking a stake in an Intel joint venture, though Intel declined to comment.

Government Support & Oversight

The investment qualifies for CHIPS Act incentives, including subsidies and tax credits. Taiwan’s government said it will review the investment to protect Taiwan’s key technologies.

TSMC has already received $1.5 billion from the CHIPS Act. U.S. officials say companies like TSMC are investing in the U.S. partly to avoid future tariffs under Trump’s potential new policies.