TSMC commits $100bn to US chip expansion, raising total to $265bn
TSMC is investing an additional $100bn in Arizona, cementing a US-led shift in advanced chip manufacturing that leaves European industry further from the centre of the global AI supply chain.
TSMC will invest another $100bn in Arizona, a move expected to add four new plants to its existing American pipeline and bring its total US commitment to $265bn. The Taiwanese chipmaker, which manufactures the world's most advanced semiconductors for companies like Nvidia and Apple, announced the plans alongside a 77% jump in second-quarter net profits to $22bn.
The expansion is a direct result of aggressive US industrial policy. President Donald Trump has prioritised repatriating semiconductor production since pandemic-induced shortages exposed critical supply chain vulnerabilities. In January, Washington agreed to cut tariffs on Taiwanese goods to 15% specifically in exchange for these massive investments. Trump has previously attributed TSMC's initial US expansion to his threats of tariffs on Taiwan and the broader global semiconductor business.
For European policymakers and investors, the announcement sharpens a growing strategic concern. While the US successfully uses its market size and tariff leverage to anchor the world's most critical chipmaker, Europe's own automotive and tech industries remain heavily dependent on imported advanced semiconductors. As global demand surges to power AI data centres and smart devices, European manufacturers risk facing a supply chain increasingly structured around US political interests rather than open market access.
TSMC's sheer financial weight makes this realignment difficult to ignore. Memory chip demand has driven the firm to become Asia's most valuable company, with a stock market valuation of around $2 trillion. Its share price has jumped by more than 55% this year. Chief executive CC Wei noted that the exact timeline for the new Arizona plants would depend on the "market situation", adding to the eight facilities already being built or planned in the US.
"We believe this investment will help to further foster the development of the US semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States," Wei said. US Commerce Secretary Howard Lutnick welcomed the plans as a direct win for Washington's trade strategy. "President Trump's leadership is driving companies to invest in American manufacturing," Lutnick said. "TSMC's announcement of an additional $100 billion investment following our historic deal on trade and investment with Taiwan will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America."
