President Donald Trump to Announce $100 Billion TSMC Semiconductor Expansion in US

President Donald Trump is set to announce on Monday that Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, is planning to invest $100 billion in the United States. This announcement comes from an individual familiar with the matter, though they were not authorized to speak publicly.

TSMC plays a crucial role in the global semiconductor supply chain, manufacturing chips for tech giants like Apple, Intel, and Nvidia. The company had previously disclosed plans to invest over $65 billion in the US, specifically in Arizona, after the Biden administration’s subsidies aimed at boosting domestic chip production.

The first TSMC factory in Arizona has already begun mass production of 4-nanometer chips.

However, it remains unclear whether the newly announced $100 billion investment includes the previously declared $65 billion or represents an entirely new commitment.

Trump and TSMC CEO Meeting: What’s on the Agenda?

Taiwan Semiconductor Manufacturing Co. (TSMC) has confirmed that its Chief Executive Officer will meet with President Donald Trump on Monday, but no further details were provided regarding the agenda.

Last month, TSMC’s board convened in the United States for the first time, sparking speculation that an additional investment would be announced, though no official declaration was made.

The White House has not yet issued a comment on the upcoming meeting.

The CHIPS and Science Act: A Game-Changer for US Semiconductor Manufacturing

In 2022, former President Joe Biden signed the CHIPS and Science Act, allocating $280 billion to revitalize US-based semiconductor manufacturing. The move aimed to prevent supply chain disruptions like those seen during the COVID-19 pandemic, which caused widespread shortages and economic instability.

When chip factories, particularly those overseas, halted production, it severely impacted multiple industries, including automobile manufacturing and consumer electronics, contributing to inflationary pressures.

Trump’s Stance on Chip Manufacturing and Economic Policies

Despite the Biden administration’s efforts to incentivize domestic chip production, President Donald Trump has criticized the CHIPS Act, advocating instead for a different strategy. His approach includes the imposition of high tariffs on imported chips to compel companies to manufacture semiconductors in the US.

Additionally, Trump has expressed skepticism toward federal tax incentives for major corporations like TSMC, asserting that such companies should invest in the US without reliance on government subsidies.

Trump's Efforts to Attract Business Investments

Since taking office in January, Trump has made business expansion and job creation a priority, hosting numerous corporate leaders to announce major investment deals.

• January 2024: Trump appeared alongside OpenAI, Oracle, and SoftBank executives, unveiling a $500 billion investment for AI-driven infrastructure projects.

• January 2024: Trump also secured a $20 billion investment from DAMAC Properties (UAE) to construct AI-focused data centers in the US.

• Last week: After meeting with Apple CEO Tim Cook, the tech giant announced a $500 billion investment over four years, including a new server factory in Texas. Trump claimed that Apple’s manufacturing operations would shift from Mexico to the US.

Conclusion

The potential $100 billion semiconductor investment from TSMC could significantly strengthen the US tech industry and boost domestic chip production. However, questions remain regarding whether this sum includes the previously announced $65 billion or represents a separate commitment.

As the semiconductor race intensifies globally, this meeting between Trump and the TSMC CEO could reshape the future of US chip manufacturing. With ongoing supply chain challenges and rising demand for advanced processors, this investment could play a crucial role in securing the US semiconductor industry’s future.

The outcome of this discussion may also influence future policies on trade, tariffs, and tech investments, as the US seeks to reduce reliance on foreign-made chips and establish a more self-sufficient semiconductor ecosystem.