President Trump announces that TSMC will invest 15 trillion yen in US semiconductor factories

By Li Jilin

As President Donald Trump's 'deal diplomacy' using tariffs as a weapon increases the risk of tariffs on products produced outside the United States, TSMC and President Trump jointly announced a plan on March 3, 2025 to invest at least $100 billion (15 trillion yen) in additional semiconductor manufacturing plants in the United States over the next few years.

TSMC Intends to Expand Its Investment in the United States to US$165 Billion to Power the Future of AI
https://pr.tsmc.com/english/news/3210

Trump, Chip Maker TSMC Announces $100 Billion Investment in US - WSJ
https://www.wsj.com/tech/trump-chip-maker-tsmc-expected-to-announce-100-billion-investment-in-us-02a44399

TSMC to invest $100B as Trump demands more US-made chips, report says - Ars Technica
https://arstechnica.com/tech-policy/2025/03/tsmc-will-reportedly-invest-100b-to-expand-us-chip-fab-buildouts/

TSMC announces $100 billion investment in US chipmaking | The Verge
https://www.theverge.com/news/623335/tsmc-chip-factories-100-billion-trump

President Trump and TSMC CEO Xi Jinping announced at a White House press conference that the additional $100 billion will be used to expand TSMC's semiconductor manufacturing facility in Phoenix, Arizona. According to Wei, TSMC plans to build three new semiconductor factories, two semiconductor packaging plants, and a research and development center.

President Trump Makes an Investment Announcement - YouTube


Some reports have noted that it's unclear whether the plan is a hastily planned one or something TSMC has been considering for some time, but President Trump has said it's proof that the tariff threat is working.

'If you make a chip in Taiwan and ship it to the United States, the tariff will be 25 percent, 30 percent, 50 percent, or a significant amount. The tariffs are only going to go up, but if you make it in the United States, there's no tariff,' Trump said.

Today's announcement advances President Trump's goal of strengthening national security by bringing back semiconductor manufacturing bases that have been shifting to Asia, and is also consistent with TSMC's efforts to decentralize its manufacturing operations concentrated in Taiwan.

In 2024, TSMC will receive $6.6 billion in direct investment from the Chips Act and will invest $65 billion to build three factories in Phoenix, Arizona. This additional investment will bring TSMC's total investment in U.S. factories to $165 billion.

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Semiconductors are strategic materials essential for the production of smartphones, the development of AI, and the manufacturing of weapons. The supply chain problems and resulting semiconductor shortages that arose during the COVID-19 pandemic have once again highlighted the fact that semiconductors are essential to national security.

During the election campaign, President Trump criticized the CHIPS Act signed by former President Biden, arguing that tariffs would be better used to attract manufacturing to the U.S. He also said that after the inauguration of the second Trump administration, he would consider imposing a uniform tariff of 25% or more on automobiles, semiconductors, and other products imported into the U.S.

'With the success of our first factory, we are now producing cutting-edge chips in America. We plan to create thousands of good-paying jobs and produce many more AI chips,' Wei said at a press conference.

The Trump administration is also reportedly encouraging TSMC to acquire Intel's semiconductor business.