Trump has shaken things up, to be sure. But no one thought something so drastic would happen.
Now the White House received an urgent letter that is dropping jaws in Washington, D.C.
TSMC to Invest $100 Billion in U.S. Semiconductor Plants
President Donald Trump announced Monday that Taiwan Semiconductor Manufacturing Co. (TSMC) will invest a staggering $100 billion to build new semiconductor manufacturing facilities in Arizona. This massive move is set to bolster U.S. technological dominance and create tens of thousands of jobs.
“This will create hundreds of billions of dollars in economic activity and boost America’s dominance in artificial intelligence and beyond,” Trump said. “Semiconductors are the backbone of the 21st-century economy, and really, without the semiconductors, there is no economy.”
Five New Facilities and Thousands of American Jobs
TSMC’s investment will fund five new manufacturing plants in Arizona. According to President Trump, these facilities will generate between 20,000 and 25,000 jobs—many of them high-paying positions in advanced technology.
“The most powerful AI chips in the world will be made right here in America,” Trump declared, calling the move both an economic and national security priority.
“We must be able to build the chips and semiconductors that we need right here in American factories with American skill and American labor,” he added. “That’s exactly what we’re doing.”
C.C. Wei, TSMC’s CEO, echoed Trump’s enthusiasm. “It’s going to create thousands of high-paying jobs,” Wei said, expressing gratitude for the administration’s support.
A major benefit for TSMC is that chips manufactured in the U.S. will not be subject to tariffs—a key part of Trump’s America-first economic policy.
Trump Targets Global Semiconductor Market Share
Trump said these investments will push the U.S. share of global semiconductor production closer to 40%, challenging Taiwan’s overwhelming dominance in the industry.
“They left us and went to Taiwan,” Trump said during a January meeting with congressional Republicans. “And we don’t want to give them billions of dollars like this ridiculous program that Biden has given everybody billions of dollars. They already have billions of dollars. They didn’t need money. They needed an incentive. And the incentive is going to be they’re not going to want to pay a 25, 50 or even a 100% tax.”
The president has repeatedly threatened up to 100% tariffs on semiconductor imports if companies do not move production to the U.S., aiming to secure critical supply chains and eliminate America’s reliance on foreign manufacturing.
The Risks of Taiwan’s Semiconductor Monopoly
TSMC’s dominance over the semiconductor market is a growing concern. Over 90% of the world’s most advanced chips are produced in Taiwan—a nation under constant threat of invasion by communist China.
Analysts warn that any military conflict could devastate global supply chains, leaving the U.S. vulnerable. TSMC also operates facilities in mainland China, raising fears of hacking and sabotage by the Chinese government.
Lawmakers and officials have even suggested destroying TSMC’s Taiwanese plants if China invades to prevent the technology from falling into Beijing’s hands. Critics argue, however, that halting chip production on the island—regardless of who controls it—would trigger a catastrophic global economic crisis.
Trump’s Broader Push for Domestic Investment
The TSMC deal is just one of several major investments President Trump has secured since returning to the White House. Industry giants across technology and manufacturing are lining up to bring production back to American soil:
- OpenAI, Oracle, and SoftBank have committed to spending up to $500 billion on artificial intelligence infrastructure.
- DAMAC Properties pledged $20 billion to construct new data centers.
- Apple CEO Tim Cook announced plans to invest $500 billion in the U.S. and move manufacturing from Mexico to American facilities.
- Honda confirmed that it will produce its next-generation Civic hybrid in the U.S. instead of Mexico to avoid Trump’s proposed tariffs.
