Taiwan Semiconductor Doubles Down On US Chipmaking, Plans $165 Billion Investment

On Tuesday, contract chipmaker Taiwan Semiconductor Manufacturing Co TSM announced plans to invest an additional $100 billion in advanced semiconductor manufacturing in the U.S.

Building on the company’s ongoing $65 billion investment in its advanced semiconductor manufacturing operations in Phoenix, Arizona, Taiwan Semiconductor’s total investment in the U.S. will likely reach $165 billion. The expansion includes plans for three new fabrication plants, two advanced packaging facilities, and a significant R&D team center.

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The contract chipmaker expects to create hundreds of billions of dollars in semiconductor value for AI and other cutting-edge applications. The expanded investment will likely support 40,000 construction jobs over the next four years and create tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D.

It will likely drive over $200 billion of indirect economic output in Arizona and across the U.S. in the next decade, the company said.

Taiwan Semiconductor’s Arizona fab currently employs more than 3,000 people on 1,100 acres of land in Arizona. The site has been in volume production since late 2024.

U.S. President Donald Trump has been a critic of Taiwan since his presidential campaign days for accusing them of allegedly stealing American semiconductor business. He promised action against the country and threatened retaliatory tariffs because of Taiwan’s large trade surplus with the U.S.

IDC expects the Taiwanese contract chipmaker to command a 67% share of the global foundry market in 2025, up 300 bps year over year.

Separate reports indicated the U.S. government canvassing Taiwan Semiconductor to help bail out Intel Corp INTC out of its woes via strategic acquisition.

Meanwhile, Big Tech giants remain aggressively invested in their AI ambitions. Apple Inc AAPL, a key Taiwan Semiconductor client, committed over $500 billion to AI and advanced manufacturing.

Price Action: TSM stock traded higher by 1.48% to $175.53 premarket at the last check on Tuesday.

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