Taiwanese chipmaker TSMC will invest another $100bn (£74bn) in Arizona as it expands its production in the US, according to a BBC report. The investment raises the company's total commitment to the US to $265bn. The Commerce Department said the move will create tens of thousands of American jobs.
Expansion Details
TSMC chief executive CC Wei said the increase will likely see four new plants built in Arizona. He did not give a timeline, saying only that it would depend on the "market situation." The new plants would add to the eight already being built or planned. These plants manufacture the most advanced chips designed by companies such as Nvidia and Apple.
"We believe this investment will help to further foster the development of the US semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States," Wei said.
| Aspect | Detail |
|---|---|
| New investment | $100bn |
| Total US commitment | $265bn |
| Likely additional plants | 4 |
| Existing/planned plants | 8 |
| Q2 net profit (April-June) | $22bn (up 77% from $12.4bn) |
Political and Policy Context
Commerce Secretary Howard Lutnick welcomed the plans, stating: "President Trump's leadership is driving companies to invest in American manufacturing. TSMC's announcement of an additional $100 billion investment following our historic deal on trade and investment with Taiwan will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America."
President Donald Trump has previously attributed a decision by TSMC last year to expand its investments in the US to his threats of tariffs on Taiwan and the global semiconductor business. In January this year, the US said it had agreed to cut tariffs on goods from Taiwan to 15% in exchange for hundreds of billions of dollars in investment aimed at boosting domestic production of semiconductors.
Financial Performance and Market Position
TSMC reported a 77% jump in second-quarter net profits. Profit from April to June jumped to $22bn, from $12.4bn in the same three months a year earlier. Strong demand for TSMC's chips, which power AI data centres and smart devices, has helped make it Asia's most valuable company. Its share price has jumped by more than 55% this year, giving it a stock market valuation of around $2 trillion.
The Arizona expansion underscores TSMC's role as a key supplier for companies like Nvidia and Apple. The new plants aim to strengthen the US semiconductor supply chain, a priority since shortages during the Covid-19 pandemic exposed supply chain risks. The Commerce Department's reference to "tens of thousands of jobs" highlights the expected employment impact, though specific headcount figures were not provided.
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