Taiwan's largest semiconductor manufacturer, TSMC, has announced that it will invest $100 billion to build five new chip factories in the United States. The company's CEO, C.C. Wei, made the announcement alongside former President Donald Trump at the White House. Chips are used in a wide range of sectors, from smartphones to cars and even military aircraft. Taiwan plays a central role in global chip production. However, recent restrictions imposed on China and the reduction of alternatives have raised concerns about Taiwan's dominant position in chip manufacturing.
In his speech, Donald Trump emphasized, "We need to produce the chips and semiconductors we need in our own country. This is a matter of national security."
TSMC is the main supplier for tech companies in the U.S. Under the new investment, three chip manufacturing plants, two advanced chip packaging factories, and a large research center will be built.
The U.S. government supports this move to increase domestic production and reduce dependency on semiconductor imports from Asian countries. In fact, TSMC had initially planned to invest $25 billion in the U.S. last year, but later decided to increase this amount to $65 billion. The company also plans to open a third chip plant in Arizona by 2030.
While the construction timeline for the new factories has not been fully specified, it is expected that 40,000 new jobs will be created over the next four years as part of these projects.
Following this announcement, TSMC's shares listed on the Taiwan stock exchange dropped by 2%. A spokesperson for the Taiwanese government immediately issued a statement, indicating that the government will review TSMC’s investments in the U.S. The spokesperson also noted that foreign investments that enhance Taiwan's access to global markets and strengthen the country's competitive power are generally viewed positively.
Additionally, the Taiwanese Presidential Office issued an official statement, pledging support for TSMC’s U.S. investments while ensuring that the most advanced semiconductor technologies remain in Taiwan.
