for the next four years, this TSMC investment represents Taiwan Semiconductor Manufacturing's efforts to expand all the company’s factories.
"We must be able to build the chips and semiconductors that we need right here. It's a matter of national security for us.", the current U.S President stated.
The new TSMC chips investment has also been made public during a press conference that happened Monday, by the current U.S. President Donald Trump. As stated by the chairman and CEO of the TSMC chips company, the $100 billion investment, will sponsor the opening of various new factories in Arizona.
The Taiwan company announced that the U.S expansion will feature three new chip fabrication plans, two advanced packaging facilities along with a large research and development center.
“We are going to produce many AI chips … to support AI progress,”, the chairman and CEO of TSMC chips, C.C. Wei also stated.
It should be mentioned that the Taiwan Semiconductor Manufacturing Company has also previously agreed to invest about $65 billion to support other U.S factories. Also, TSMC has received up to $6.6 billion in grants since the Biden government decided to increase domestic semiconductor production by releasing the CHIPS Act.
As a result, if we combine these TSMC investments together, the company has been financing the U.S.S chip industry with about $165 billion.
For quite some time, the U.S. government has raised concerns about the TSMC chips’ dominance in the chip manufacturing industry and tried to push the Taiwan company to expand its production in the U.S territory. The company’s experience in the advanced chip industry represents an important asset, especially for artificial intelligence chips. Since all companies are now planning to develop more advanced AI technologies and AI products, these chips have recorded a high production demand.
Even more so, after the recent U.S election when Donald Trump became the new President for the next four years, he decided to require additional tariffs on all foreign chip productions. This additional tariff plan is currently part of a bigger plan to expand chip manufacturing in the U.S territory and potentially stop de Biden’s CHIP Act.
But we must ask, is Donald Trump planning to delay these additional tariffs after this $100B investment? As stated by the CEO of a tech advisory firm, this TSMC investment will probably have a significant impact on Trump’s decision.
“As the U.S. continues to push for increased domestic manufacturing and with tariffs on the horizon, a substantial commitment from TSMC could serve as a strategic gesture of goodwill,”, The CEO stated for TechCrunch.
Currently, TSMC represents the largest contract chip maker globally and has various factories in the U.S. territory, including one in Arizona which started mass production a couple of months ago.
The TSMC shares opened 2,25% lower on Tuesday and later they were trading down about 1,5%. Also, according to the most recent data, the Taiwan Semiconductor Manufacturing stock is trading at $172.97 per share, which reflects a decrease of about 4.1% compared with the previous closing price.
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