Did Tariff Pressure Work?... Trump: "TSMC to Make Additional $100 Billion Investment"

TSMC Investment Plan Announced at the White House
"The World's Most Powerful AI Chips to Be Produced in the United States"

Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), will invest an additional $100 billion (approximately 146 trillion won) in semiconductor factories in the United States over the next four years. U.S. President Donald Trump stated that TSMC "will not be subject to tariffs by doing so here" and that "the world's most powerful artificial intelligence (AI) chips will be made right here in the United States." As competition among countries intensifies over advanced semiconductor dominance, companies are accelerating their investment expansion in the U.S. to avoid President Trump's 'tariff bomb,' which is expected to further speed up the U.S.'s efforts to build a domestic semiconductor supply chain.

On the 3rd (local time), President Trump announced TSMC's investment plan centered on this at the White House. The announcement was made in the presence of TSMC Chairman Wei Zhejia and U.S. Secretary of Commerce Wilbur Ross.

President Trump said, "Semiconductors are the backbone of the 21st-century economy; without semiconductors, there is no economy." He emphasized, "From AI to automobiles to advanced manufacturing, semiconductors are needed everywhere, and we must be able to produce them right here in American factories with American technology and labor," adding, "This is a matter of national security for us."

With this additional investment, TSMC's total investment in the U.S. will expand to $165 billion, including the previously planned $65 billion investment in Arizona. President Trump announced that five TSMC semiconductor factories are expected to be built in Arizona through this investment.

Chairman Wei mentioned that TSMC's investment in the U.S. began during President Trump's first administration in 2020. He also emphasized that this investment will create thousands of new jobs in the U.S.

Previously, TSMC announced in 2020 that it would invest $12 billion to build a semiconductor factory in Arizona. Subsequently, it decided to build two additional factories, totaling three, and expand the investment to $65 billion. TSMC's first Arizona factory began mass production last year.

This investment is expected to accelerate the U.S.'s efforts to build a domestic semiconductor supply chain. While the world competes for dominance in advanced semiconductors, the U.S. has approached semiconductors from a national security perspective and has driven the establishment of semiconductor production facilities through bipartisan legislation such as the CHIPS and Science Act (CSA) since the Biden administration. TSMC also agreed to receive $6.6 billion in subsidies related to its U.S. investment based on the CSA during the Biden administration.

However, President Trump, while agreeing on the need to build a domestic semiconductor supply chain, has argued that expanding investment in the U.S. by foreign companies should be driven by tariffs rather than subsidies. He believes that a 'carrot' is less necessary than a 'stick.' On the 19th of last month, he announced that tariffs of over 25% would be imposed on semiconductors, stating, "If you come to the U.S. and build a factory, there will be no tariffs." He also said that semiconductor and automobile companies would soon make announcements regarding their investment in the U.S.

Secretary Ross, who attended the TSMC investment plan announcement event, also emphasized that TSMC's decision to invest in the U.S. was due to President Trump's tariff policy rather than subsidies. Secretary Ross said, "TSMC and other companies want to invest in the U.S. to avoid President Trump's new tariffs," adding, "You are now witnessing the power of President Trump."

This content was produced with the assistance of AI translation services.