In a major development for the semiconductor industry, former U.S. President Donald Trump has reportedly announced that Taiwan Semiconductor Manufacturing Company (TSMC) will invest $100 billion in expanding chip production in the United States. While no official confirmation has come from TSMC, this claim has sparked widespread discussion about the future of U.S. chip manufacturing.

TSMC’s Existing U.S. Investments

TSMC, the world’s largest contract chip manufacturer, has already committed $40 billion to build two advanced semiconductor fabs in Phoenix, Arizona. The project, one of the most significant foreign direct investments in the U.S. tech sector, is expected to:

• Produce 3nm and 4nm chips, among the most advanced in the world.
• Create thousands of jobs in engineering, manufacturing, and supply chain operations.
• Reduce reliance on Asian chip production, strengthening U.S. supply chain resilience.

Is a $100 Billion Expansion Possible?

While TSMC has not officially confirmed this $100 billion figure, industry analysts note that such an investment would align with:

• The U.S. CHIPS and Science Act, which offers billions in subsidies to boost domestic semiconductor production.
• The global demand for AI, automotive, and high-performance computing chips, requiring larger and more advanced manufacturing facilities.
• Competition with Intel and Samsung, both of which are also expanding their U.S. manufacturing capabilities.

Political Implications

Donald Trump has long advocated for bringing semiconductor manufacturing back to the U.S. If TSMC were to significantly expand its American operations, it could become a key talking point in the ongoing debate about U.S. technological independence from Asia.

Challenges & Considerations

Despite the ambitious reports, several hurdles exist:

• High construction and labor costs in the U.S. compared to Taiwan.
• Skilled workforce shortages, as semiconductor manufacturing requires highly specialized talent.
• Geopolitical factors, including U.S.-China tensions that could impact TSMC’s supply chain and partnerships.

What’s Next?

If TSMC officially announces a $100 billion investment, it would mark one of the largest tech infrastructure commitments in U.S. history. Until then, industry experts await further confirmation from TSMC, U.S. officials, and the semiconductor sector regarding the validity of Trump’s statement.