Taiwan Semiconductor to Invest $100 Billion in U.S. Chip Plants—A Global Shift in Semiconductor Power

TSMC’s Historic $100 Billion Investment in U.S. Semiconductor Expansion

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chipmaker, has announced an ambitious $100 billion investment to expand its semiconductor manufacturing capabilities in the United States. This move marks a significant shift in the global chip-making landscape and aligns with U.S. efforts to strengthen domestic semiconductor production.

According to sources familiar with the matter, TSMC intends to execute this investment over the next four years, with official details expected to be revealed as early as today. The news, first reported by The Wall Street Journal, highlights a broader initiative to enhance U.S. technological infrastructure and reduce dependency on overseas manufacturing.

TSMC’s CEO to Meet with U.S. President

In an email to Barron’s, TSMC confirmed that its CEO, C.C. Wei, will attend a high-level meeting at the White House on Monday.

“We’re pleased to have an opportunity to meet with the President and look forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers,” the company stated.

This high-profile engagement underscores the U.S. government’s commitment to ensuring semiconductor supply chain resilience and positioning itself as a global hub for cutting-edge chip manufacturing.

A Strategic Move Amid Global Chip Industry Shifts

TSMC’s expansion into the U.S. is not just about investment—it signals a geopolitical shift in the semiconductor industry. Amid increasing concerns over supply chain vulnerabilities and tensions in the Taiwan Strait, Washington has been actively encouraging major chipmakers to set up production facilities on American soil.

There are also speculations that TSMC may be considering a stake in Intel’s struggling foundry business, or even an outright acquisition of Intel’s semiconductor division. Such a move would significantly reshape the competitive landscape of the global chip market.

TSMC’s Growing U.S. Presence

TSMC was founded in 1987 and, for decades, its advanced semiconductor manufacturing was primarily centered in Taiwan. However, recognizing the growing importance of diversifying its production, the company made a historic commitment in May 2020 to build its first U.S.-based factory in Phoenix, Arizona.

Since then, TSMC has:

Started mass production at its first U.S. factory in late 2024
Expanded construction to include two additional semiconductor plants at the Phoenix site
Maintained production of the most advanced chip components overseas

Despite these expansions, TSMC’s most cutting-edge semiconductor technology remains manufactured in Taiwan, reinforcing Taiwan’s continued dominance in the sector while gradually expanding the U.S.’s role in global chip production.

Market Reaction: A Strong Year for TSMC Stocks

TSMC’s U.S.-listed shares soared nearly 90% in 2024, making it the company’s best year since 1999, when it skyrocketed 290%, according to Dow Jones Market Data.

However, on Monday, TSMC’s stock dipped 2.8%, settling at $175.46, as investors reacted to the latest developments.

What This Means for the Global Semiconductor Industry

Strengthening U.S. Chip Supply: This investment reinforces America’s efforts to reduce reliance on foreign-made semiconductors, especially as global tensions impact supply chains.
Boosting Technological Innovation: TSMC’s cutting-edge chipmaking capabilities could propel U.S. industries forward, particularly in AI, 5G, and advanced computing.
Reshaping Global Competition: The semiconductor race is heating up, with China, South Korea, and the EU also intensifying efforts to strengthen their chip production capabilities.

Final Thoughts

TSMC’s $100 billion investment is more than just a business expansion—it’s a strategic move with global implications. As the semiconductor industry faces unprecedented demand, geopolitical tensions, and technological breakthroughs, this investment solidifies TSMC’s role as the world’s leading chipmaker and positions the U.S. as a growing force in semiconductor manufacturing.

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