TSMC to Expand U.S. Investment to $165 Billion to Drive AI Innovation By CIOTechOutlook Team

TSMC to Expand U.S. Investment to $165 Billion to Drive AI Innovation

CIOTechOutlook Team | Wednesday, 05 March 2025, 06:07 IST

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TSMC has announced plans to further expand its investment in advanced semiconductor manufacturing in the United States by an additional $100 billion. This follows the company’s ongoing $65 billion investment in its semiconductor operations in Phoenix, Arizona, bringing the total investment in the U.S. to an impressive $165 billion. The expansion will include the construction of three new fabrication plants, two advanced packaging facilities, and a major R&D center, making it the largest foreign direct investment in U.S. history.

This expansion is expected to generate hundreds of billions of dollars in semiconductor value for Artificial Intelligence and other cutting-edge technologies. TSMC anticipates that the project will create 40,000 construction jobs over the next four years and provide tens of thousands of high-paying, high-tech positions in advanced chip manufacturing and R&D. Moreover, the investment is projected to generate more than $200 billion in indirect economic output across Arizona and the broader U.S. over the next decade. This initiative underscores TSMC’s commitment to supporting its customers, including leading U.S. AI and tech companies such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm.

"This $100 billion in new investment will go into building five cutting-edge fabrication facilities in the great state that we just discussed, Arizona, and will create thousands of jobs — many thousands of jobs, and they're high-paying jobs," Trump said. Monday's announcement brings Taiwan Semiconductor's investment to about $165 billion.

“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.”

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