Taiwan Semiconductor Rises As $100 Billion U.S. Expansion Defies Market Downturn

Taiwan Semiconductor Manufacturing Co. TSM shares are trading higher Tuesday after the company announced plans to invest an additional $100 billion in advanced semiconductor manufacturing in the United States.

What To Know: The new investment adds to the company's ongoing $65 billion project in Phoenix, Arizona, bringing total U.S. commitment to $165 billion. The expansion plan includes three new fabrication plants, two advanced packaging facilities and a significant R&D center aimed at supporting AI and other advanced technologies.

The company expects the initiative to create 40,000 construction jobs through the next four years, as well as tens of thousands of positions in chip manufacturing and research.

Taiwan Semiconductor projects the investment will drive over $200 billion in indirect economic output across the U.S. over the next decade. The Arizona facility, which employs more than 3,000 people, began volume production in late 2024.

Industry analysts forecast TSM will hold a 67% share of the global foundry market in 2025, a three-percentage-point increase year over year. Meanwhile, reports indicate the U.S. government has approached TSM to consider aiding Intel Corporation INTC through a potential strategic acquisition.

Apple Inc. AAPL, one of Taiwan Semiconductor's largest clients, remains heavily invested in AI and advanced manufacturing, committing over $500 billion to these initiatives.

TSM Price Action: Taiwan shares were up 4.89% at $181.43 at the time of writing, according to Benzinga Pro.

Read Next:

• Trump Tariffs Will Raise Prices ‘Within Days,’ Target CEO Says