Monday, March 3rd 2025
TSMC Intends to Expand Its Investment in the United States to US$165 Billion to Power the Future of AI
TSMC (TWSE: 2330, NYSE: TSM) today announced its intention to expand its investment in advanced semiconductor manufacturing in the United States by an additional $100 billion. Building on the company's ongoing $65 billion investment in its advanced semiconductor manufacturing operations in Phoenix, Arizona, TSMC's total investment in the U.S. is expected to reach US$165 billion. The expansion includes plans for three new fabrication plants, two advanced packaging facilities and a major R&D team center, solidifying this project as the largest single foreign direct investment in U.S. history.
Through this expansion, TSMC expects to create hundreds of billions of dollars in semiconductor value for AI and other cutting-edge applications. TSMC's expanded investment is expected to support 40,000 construction jobs over the next four years and create tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D. It is also expected to drive more than $200 billion of indirect economic output in Arizona and across the United States in the next decade. This move underscores TSMC's dedication to supporting its customers, including America's leading AI and technology innovation companies such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm.
"Back in 2020, thanks to President Trump's vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality," said TSMC Chairman and CEO Dr. C.C. Wei. "AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications. With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our U.S. semiconductor manufacturing investment by an additional $100 billion, bringing our total planned investment to $165 billion."
TSMC's Arizona fab currently employs more than 3,000 people on 1,100 acres of land in Arizona. The site has been in volume production since late 2024. This expansion will play a crucial role in strengthening the U.S. semiconductor ecosystem by increasing American production of advanced semiconductor technology. It will also complete the domestic AI supply chain with TSMC's first U.S. advanced packaging investments.
In the United States, in addition to its latest manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centers in Austin, Texas, and San Jose, California.
Through this expansion, TSMC expects to create hundreds of billions of dollars in semiconductor value for AI and other cutting-edge applications. TSMC's expanded investment is expected to support 40,000 construction jobs over the next four years and create tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D. It is also expected to drive more than $200 billion of indirect economic output in Arizona and across the United States in the next decade. This move underscores TSMC's dedication to supporting its customers, including America's leading AI and technology innovation companies such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm.
TSMC's Arizona fab currently employs more than 3,000 people on 1,100 acres of land in Arizona. The site has been in volume production since late 2024. This expansion will play a crucial role in strengthening the U.S. semiconductor ecosystem by increasing American production of advanced semiconductor technology. It will also complete the domestic AI supply chain with TSMC's first U.S. advanced packaging investments.
In the United States, in addition to its latest manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centers in Austin, Texas, and San Jose, California.
19 Comments on TSMC Intends to Expand Its Investment in the United States to US$165 Billion to Power the Future of AI
Discuss the investment, discuss the AI potential, but don't post politically charged crap, thank you.
I love it. A rising tide lifts all boats.
intel had no problem raising capital
poor economy and a couple of poor pr moves and it’s over.
hey should have made some soft promises for a second fab when 2nm was running smoothly in the US.
this is unnecessarily risky in this economy
The people that are running the company now should listen to the founder Morris Chang.
What we need is more companies like TSMC to battle it out so we can get better products at lower prices.
Wish Europe got it's own fabs too.
But you can. You can say how great it is that investment is continuing. You can say that it might take quite a while to work out. You can say that you don't think it'll pan out. You can say that the jobs went overseas in the 80s and 90s when free trade took over - a policy enacted by those administrations of the time. How businesses cheaped out, and western countries lost out to developing nations. Bringing investment back, is of course, politically motivated, but the US has been doing that for some years. Carrot and stick approaches. As for the article - all about AI. Will that work out? And what will the end-product be? Who knows.
There, I did a related post without doing 'charged' politics. And to be clear, partisan posts will be removed or edited.
It is stupid to have ~60% of any industry to be concentrated in a small island, which can be hit by a random earthquake.
There is no natural specialty with Taiwan to keep it that way. This can be done basically anywhere.
Reducing Taiwan's share is good for the rest of us.
But sooner or latter they will get a big one and then we all
Natural disasters usually strike in relative small places, but if you concentrate an industry in one place, bad things will happen.
Remember this one? Hard Drive Prices Rise Due To Thai Floods
So if the manufacturing gets well distributed it is good for everyone - except Taiwan of course.
Imagine, losing just 30% of Taiwan's capacity to produce.
You would be happy if you get stuff "only" for double of the current prices!
Still, keeping the whole semiconductor industry hostage is not good for 99% of the people either.
While I still saying that even there is no invasion, but handy dandy peace - a big earthquake/natural disaster still can end the industry there - at least for some time anyway.
NO BOUENO
So I hope not just the USA building back it's chip industry, but Europe also has to work overtime on local production too.