Taiwanese semiconductor company TSMC is set to play a crucial role in the resurgence of the American semiconductor industry. TSMC announced on the 3rd (local time) that it plans to invest $100 billion (approximately 133 trillion won) in the U.S. over the next four years to significantly expand its advanced semiconductor manufacturing facilities. This announcement was made directly by former President Trump at the Roosevelt Room in the White House, adding political significance.
As competition for global semiconductor supremacy intensifies, TSMC’s large-scale investment targets two major goals: enhancing domestic production capacity and achieving technological independence within the United States. Currently constructing a $65 billion plant in Phoenix, Arizona, TSMC aims to further expand its production base in the U.S. and realign the semiconductor supply chain essential for strategic sectors like AI and national defense around the U.S.
In his announcement, former President Trump stressed, “America will no longer rely on foreign technology for its survival,” highlighting TSMC’s investment as a pivotal turning point to restore the American semiconductor industry to global prominence. Since the enactment of the CHIPS Act in 2022, the U.S. has accelerated its semiconductor industry rebuilding efforts, although it still heavily depends on Asia. This investment is part of a strategy to gain an edge in technological competition with China by firmly establishing advanced processing production domestically.
The political implications are clear as well. TSMC’s large investment is likely to serve as a representative example of the ‘American manufacturing revival’ that Trump has advocated. The expansion of domestic production and creation of advanced jobs are attractive outcomes for the political world, especially with elections approaching. Notably, Trump has warned of imposing tariffs on semiconductor imports, and TSMC’s expanded investment could effectively bypass such regulations while bringing tangible benefits to the U.S.
This investment decision draws greater attention in the midst of geopolitical tensions exacerbated by U.S.-China conflicts. As military tensions escalate between Taiwan and China, TSMC’s increased production in the U.S. aligns with a strategic move to strengthen economic ties between the U.S. and Taiwan while intensifying countermeasures against China. TSMC plans to produce cutting-edge semiconductors like AI chips at its new plants, aiming to expand the technological gap with China by introducing advanced processes for autonomous vehicles, military technology, and data center high-performance chips.
The U.S. government’s support further backs this plan. Having already received $6.6 billion in subsidies under the CHIPS Act, TSMC aims to secure even more support with this investment. Former President Trump declared, “We will make America the world’s top semiconductor-producing country,” and given that the Biden administration has pursued similar goals, a bipartisan consensus has formed on this matter.
TSMC’s $100 billion investment marks not merely the expansion of production but heralds the onset of a full-scale global technological supremacy battle between nations centering on semiconductors. The complex geopolitical landscape involving the U.S., China, and Taiwan is now set to witness an intensified struggle over this strategic asset. With the global semiconductor landscape potentially being reoriented back towards the U.S., much interest is focused on future developments.