C.C. Wei Chairman and CEO of TSMC joined US President Donald Trump on 3rd March 2025 in announcing additional massive investment of $100 billion to build three new fabs, two advanced packaging facilities and an R&D center in US. TSMC has already invested $65 billion in its advanced semiconductor chip fab in Phoenix, Arizona which is expected to make world's most advanced 2nm chips in 2028. With this level of investment TSMC is saved from paying tariffs.
TSMC said its expanded investment is expected to 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 is also expected to drive more than $200 billion of indirect economic output in Arizona and across the United States in the next decade.
“Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality," said TSMC Chairman and CEO Dr. C.C. Wei. “AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications. With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our U.S. semiconductor manufacturing investment by an additional $100 billion, bringing our total planned investment to $165 billion.”
In the United States, in addition to its latest manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centers in Austin, Texas, and San Jose, California. Along with US, TSMC is estabilshing fabs in Kumamoto, Japan and Desden, Germany, which are to start production of chips in 2027.
Pic: TSMC's underconstruction fab in Arizona
TrendForce shared its market research data from 2021 where Taiwan accounted for 71% of global advanced node capacity and 53% of mature node capacity. TrendForce estimates by 2030, Taiwan’s advanced process share to decline to 58%, while its mature process share will drop to 30% as the U.S. and China ramp up their semiconductor manufacturing capabilities.
SIA President and CEO John Neuffer praised this move quoting “This week’s announcement by TSMC and President Trump is a major win for America’s economy, supply chain security, and domestic production of the advanced chips that propel AI and many other transformative technologies of the future. Since TSMC’s initial U.S. investments announced during President Trump’s first term, companies across the semiconductor ecosystem have committed to invest more than half-a-trillion dollars in America. We applaud TSMC for investing boldly in the United States and look forward to continuing to work with leaders in Washington to advance policies that promote America’s economic strength, national security, and technology leadership.”
This news story further updated on 17th Mar 2025.
