Taiwan Semiconductor Manufacturing Company (TSM, Financials) is committing $100 billion to expand its chip manufacturing operations in the United States, bringing its total U.S. investment to $165 billion.
With continuous changes in the global supply chain, the business intends to build five more semiconductor manufacturing plants in Arizona, hence enhancing local production capability.
Former U.S. President Donald Trump greeted the revelation as a "tremendous move by the most powerful company in the world." Drawing on a recent AI infrastructure initiative combining Oracle, OpenAI, and SoftBank, he connected the investment to attempts to establish the United States as a leader in artificial intelligence.
The U.S. government's larger drive to guarantee local semiconductor manufacturing corresponds with TSMC's growth. Trump has attacked Taiwan for "stealing" U.S. chip production and pushed for taxes on semiconductor imports, thereby underlining the company's involvement in the worldwide supply chain.
The newest investment made by the chipmaker comes from a previous pledge of $12 billion in 2020 to establish a facility in Arizona, then raised to $65 billion for a third factory. To help with growth, the U.S. Commerce Department has given a $6.6 billion subsidy.
Key suppliers of both Nvidia (NVDA, Financials)? and Apple (AAPL, Financials), TSMC is also very important in the artificial intelligence sector. A Nvidia spokesman said the firm will "fully utilize TSMC's global manufacturing network" to improve supply chain resilience.
With initiatives to lower reliance on foreign supply chains still driving investment in local production, the expansion emphasizes the strategic relevance of semiconductor manufacture to the U.S. economy and national security.
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