TSMC Increases Investment in the U.S.: $165 Billion to Build Advanced Semiconductor Industry Chain

On March 4, 2025, TSMC, the world's leading semiconductor foundry, announced that it would increase its investment in the United States to $165 billion. The investment plan was jointly announced by TSMC CEO Mark Liu and U.S. President Donald Trump, aiming to significantly enhance TSMC's semiconductor manufacturing capabilities in the U.S. TSMC plans to build three new wafer fabs, two advanced packaging facilities, and one R&D center near Phoenix, Arizona. This investment will introduce more advanced 3-nanometer process technology, further perfecting TSMC's advanced backend manufacturing capabilities in the U.S.

TSMC's investment is expected to bring significant economic benefits to the U.S. Over the next four years, the plan is projected to create approximately 40,000 construction jobs and tens of thousands of high-paying, high-tech positions in chip manufacturing and R&D. Additionally, TSMC estimates that its investment will drive over $200 billion in indirect economic output over the next decade. The Trump administration views this investment as a major breakthrough for the U.S. tech industry, believing it will create 20,000 to 25,000 jobs and enhance U.S. dominance in fields like artificial intelligence.

Policy Background and Industry Trends

TSMC's investment plan is closely related to the U.S. government's industrial policies. Previously, the Biden administration provided $39 billion in subsidies to the semiconductor industry through the CHIPS and Science Act, encouraging semiconductor manufacturers to build and expand production facilities in the U.S. TSMC has received $6.6 billion of these subsidies to support the construction of its fabs in Arizona. However, the implementation of the CHIPS Act has been affected due to the Trump administration's significant reduction in federal government staffing.

Meanwhile, the U.S. government's threat to impose tariffs on the semiconductor industry has also been an important consideration for TSMC's investment. Trump had threatened to impose tariffs of 25% or higher on semiconductor equipment and other imported goods, and TSMC's investment is seen as a way to avoid tariffs and reduce national security risks for the U.S.

Industry Support and Future Outlook

TSMC is a leader in the manufacturing of AI and smartphone chips, and its investment has received strong support from major U.S. clients, including Apple, NVIDIA, AMD, Qualcomm, and Broadcom. TSMC plans to produce AI chips in the U.S., further consolidating its position in the global semiconductor market.

Moreover, TSMC's investment aligns with other significant investment plans in the U.S. AI sector. In January 2025, the OpenAI Research Center, Oracle Corporation, and SoftBank Group announced a $500 billion investment over the next four years to build data centers. This plan, known as the "Stargate" project, aims to advance the construction of AI infrastructure in the U.S.

Conclusion

TSMC's $165 billion investment plan is not only a significant strategic move in the U.S. market but also a positive response to the U.S. government's industrial policies. By introducing advanced 3-nanometer process technology, TSMC will enhance the U.S.'s competitiveness in the global semiconductor industry while creating numerous job opportunities and economic benefits. This investment also demonstrates TSMC's intention to build a closer relationship with the U.S. government to address potential future trade and technological challenges.

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