Taiwan Semiconductor Manufacturing Company (TSMC) announced Thursday it will pour another $100 billion into building new chip facilities in the United States, marking one of the largest foreign direct investments in American manufacturing history.
The new spending will go toward constructing multiple semiconductor fabrication and advanced packaging plants in Arizona, the company said during a quarterly earnings call. TSMC CEO C.C. Wei cited “strong multiyear demand from our leading U.S. customers” as the driving force behind the expansion.
Wei said the commitment aims to “further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain and support an increasing number of high-tech, high paying jobs in the United States.” The announcement comes on top of $165 billion TSMC had already pledged to spend stateside.
TSMC first announced plans in 2020 to invest $65 billion in a series of Arizona plants. Last March, Wei joined President Trump at the White House to unveil an earlier $100 billion tranche, which Trump said would “create hundreds of billions of dollars in economic activity and boost America’s dominance in artificial intelligence and beyond.”
The expansion aligns with broader US efforts to secure semiconductor supply chains amid geopolitical tensions, including Beijing’s claims to Pacific waters east of Taiwan and ongoing debates over defense spending at NATO, where Trump recently arrived in Ankara for a tense summit.
Despite the bullish investment news, TSMC’s stock dipped about 3.7 percent at market open Thursday. The chipmaker reported strong quarterly earnings for the second quarter of 2026, with revenue of $40.2 billion—up 37 percent year-over-year—and net income surging 77.8 percent to roughly $22.4 billion.
The additional spending is expected to create thousands of construction and high-tech jobs in Arizona, further integrating TSMC into the US manufacturing base. Analysts say the move also hedges against potential disruptions in Taiwan, where tensions with China remain elevated.
The investment underscores the strategic importance of semiconductor production for national security and economic competitiveness. As the US pushes to onshore critical chip manufacturing, TSMC’s expanded footprint could reshape the global supply chain for years to come.
