Taiwan Semiconductor Manufacturing Company has promised to spend another $ 100 billion on building data centers in the United States, bringing total consumption up to $ 160 billion. The investment will go into building three new manufacturing facilities in Phoenix, Arizona, as well as two packaging facilities and a research center.
TSMC has called it the “largest direct foreign investment in American history” and says that the building itself will create 40,000 construction tasks on the FAB 21 complex for the next four years. When they are up and running, tens of thousands of new “high-paying, high-tech” jobs in chip-making and research are added while generating over $ 200 billion in indirect financial output nationwide.
TSMC’s history in the United States started in 2020 when it obliged $ 12 billion to build its first Arizona factory. It raised this figure to $ 40 billion in 2022 with the announcement of another FAB and then $ 65 billion last April by a third. However, the long -term benefits cannot be felt for a while, as the other factory opening date is still set to 2027 or 2028.
US President Donald Trump said the new investment will “increase America’s dominance in artificial intelligence and beyond” and refers to it as a matter of economic and national security.
Trump has changed his tune with chip companies like TSMC since he took up
Onshoring the entire supply chain for semiconductors driving AI and other technologies has been a priority for the United States, even before the current Trump administration.
By 2022, after the brown of the global chip shortage had passed, then President Joe Biden Biden Chips ACT and awarded $ 52 billion in subsidies and tax incentives to support semiconductor research and manufacture. This was intended to shield it from the supply chain risks that geopolitical tensions pose.
The first major grant made under the Chips Act was to TSMC in November 2024 for $ 6.6 billion. At that time, Trump’s campaign team evaluated this and other awards at the last minute of the bite “wasted.” Trump also accused TSMC of stealing America’s chip businesses on a podcast and threatened to impose tariffs if he were to win the election.
Nevertheless, he has since accession made a number of features to strengthen the relationship with AI chip companies. This week, it was reported that TSMC and Broadcom are in conversations to take over some of Intel’s US chipmaking factories with encouragement from the Trump administration, according to the New York Times.
Apple also announced that it will spend $ 500 billion on manufacturing and research in the United States for the next four years. At the press conference for this week’s TSMC investment, the 78-year-old president added that there are still “many (more) who want to advertise.”
In spite of prior threats of customs duties, President Trump also emphasized at the press conference that TSMC’s choice to diversify in the states expresses it “far ahead of the game” as it will be exempt. Last month, he announced plans to introduce a 25% duty on imported semiconductors who could come in as soon as April.
But this welcoming approach to chip company contrasts with the recent Bloomberg reports suggesting that Trump is planning to cut two-fifths of the staff at the Chips Act Office.