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TSMC Commits $100 Billion to U.S. Manufacturing Amid Taiwan Concerns

The semiconductor giant’s investment, attributed to customer demand and tariff threats, raises questions about Taiwan’s strategic role in global chip production.

TSMC headquarters in Hsinchu, Taiwan, in 2024
Taiwan Semiconductor Manufacturing Company (TSMC) CEO C.C. Wei joins a press conference with President Donald Trump n the Roosevelt Room of the White House on March 3, 2025. Trump announced that Taiwan Semiconductor Manufacturing Company, one of the largest manufacturers of semiconductor chips, plans to invest $100 billion in new manufacturing facilities in the United States. (Photo by Andrew Harnik/Getty Images)
A screen in Beijing shows news footage of military drills conducted by the Chinese People's Liberation Army around Taiwan on October 14, 2024.
An electronic wafer is displayed at the TSMC Museum of Innovation in Hsinchu, Taiwan, in 2024.

Overview

  • Taiwan Semiconductor Manufacturing Company (TSMC) has announced a $100 billion investment in U.S. semiconductor facilities, including additional plants and a research center in Arizona.
  • President Trump credited the investment to his tariff threats, though TSMC and Taiwan's government maintain it was driven by strong customer demand from companies like Apple and Nvidia.
  • Taiwanese leaders and opposition parties have expressed concerns that the move could weaken Taiwan’s geopolitical leverage, often referred to as its 'silicon shield,' against potential Chinese aggression.
  • TSMC clarified that cutting-edge chip production and research will remain in Taiwan, with U.S. facilities focusing on slightly older manufacturing processes.
  • Analysts believe Taiwan will remain central to advanced semiconductor production, as the U.S. facilities are unlikely to match Taiwan’s capacity or technological sophistication in the near term.