Key Takeaways 19659002 Renowned Taiwanese semiconductor maker TSMC has committed to investing $100 billion in the US in the next four years. This money will be used to build 3 manufacturing units and two packaging units in Arizona.
Taiwanese chipmaker TSMC has pledged to invest at least $100 billion over the next 4 years in chip manufacturing plants in the US. This money will be used for the construction of three new manufacturing and two packaging facilities across Arizona.
This was announced in a news conference by President Donald Trump on Monday, where he was joined by TSMC chairman and CEO C. C. Wei.
We are going to produce many AI chips…to support AI progress – Dr. C. C. Wei
TSMC’s Collaboration With The US
It’s not the first time TSMC has invested in the US. The company has invested $165 billion in the US, including $65 billion in US-based fabrication facilities. TSMC received a $6.6 billion grant from the CHIPS Act during Biden’s term. This money was used to build 3 fabrication plants in Arizona. One of them is already operational and producing 4-nanometer chip.
Note: The CHIPS Act, introduced by Joe Biden, was designed to boost domestic semiconductor research and manufacturing.
TSMC is friendly with the USbut the timing of the new investment is still interesting.
Previously Trump expressed concern over TSMC’s dominance in chip manufacturing and urged the firm to expand its manufacturing base into the US. This coincides with Trump’s recent announcement that he mayincrease tariffs on imported chip.
Although some experts have criticized this tariffs move, i believe it could be the reason why TSMC made such a massive US investment. We’re seeing the same thing as when Apple announced its massive $500 billion investment plan in the US.
Taiwan’s Position on This Deal
Although this collaboration is a big win for the US and TSMC Taiwanese are not very happyabout it. They are worried that a deal such as this could undermine the security of the island.
The Taiwanese Government has intervened and assured the public that its’most sophisticated semiconductor technology’ would not be passed on to the US. They also said that this will have to be scrutinizedfirst, and the interests of everyone, including the citizens, will need to be assessed.
Although the government offices are aware of the deal TSMC has not yet applied for approvalwhich is normally required for such massive investments.
TSMC, the largest chip company in Taiwan is important for the economy and security of the small island. Many people worry that sharing this technology could weaken their defense. Taiwan’s Defense Minister is confident that the US will protect them.
There is a lot confusion about how this deal will turn out. However, it’s important that you note that the US did not explicitly promise any security as part of this deal. Add Techreport into Your Google News Feed.
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Amy Clark has extensive knowledge of the SaaS market. She started her journey managing and supporting the content at systeme.io before becoming a writer and then in-house managing editor for Techreport, where she manages the delivery and quality of the content, spanning reviews, comparisons, and buyer guides. Read more
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