TSMC to invest additional $100 billion in Arizona microchip manufacturing facility
PHOENIX (AZFamily/AP) — President Donald Trump announced Monday that chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest an additional $100 billion in the United States, including new and existing Phoenix-area sites.
TSMC, the world’s biggest semiconductor manufacturer, produces chips for companies including Apple, Intel and Nvidia. The company had already announced plans to invest more than $65 billion in the U.S., including three plants in Arizona after the Biden administration offered billions in subsidies. Its first factory in Arizona has started mass production of its 4-nanometer chips.
Trump and TSMC’s chief executive officer C. C. Wei said the $100 billion is on top of the $65 billion that was already announced. Wei said the investment will be for three more chip manufacturing plants, along with two packaging facilities, in Arizona.
“TSMC is doubling down on its investment with an expansion in Phoenix, testament to the U.S. semiconductor industry growth that will deliver a major win for American workers,” Phoenix Mayor Kate Gallego said in a news release. “This investment further strengthens domestic chip manufacturing, reduces reliance on foreign supply chains, and enhances national security. Billions in investment and thousands of high-tech, high-paying jobs illustrate how TSMC is a partner in cementing Phoenix as a global leader in semiconductor production. This expansion energizes innovation that fosters more economic growth, opportunities for skilled workers, and positions the Phoenix region at the forefront of advanced manufacturing.”
President of Arizona Chamber of Commerce Danny Seiden says TSMC’s expansion will not only create tens of thousands of jobs, it will have a trickle-down effect that will boost the state’s entire economy.
“This is huge news, I cannot overstate it enough how big a deal this is, “said Seiden. “This is $100 billion to our state. With that comes the need for apartments and housing, so homebuilders can build and know these are high-paying jobs coming. And they are going out to eat, buying groceries contributing to tax base so it grows revenue base in Arizona as well.”
Trump said it was a “tremendous move” and “a matter of economic security.”
“Semiconductors are the backbone of the 21st century economy. And really, without the semiconductors, there is no economy,” the president said. “Powering everything from AI to automobiles to advanced manufacturing, we must be able to build the chips and semiconductors that we need right here in American factories with Americans skill and American labor.”
Wei said the investment will be for three more chip manufacturing plants, along with two packaging facilities, in Arizona.
The $165 billion investment “is going to create thousands of high-paying jobs,” Wei said.
“This is huge news for Arizona that officially cements our state as a global hub for building the most advanced microchips in the world, and will put tens of thousands of Arizonans to work in good-paying jobs that do not require a 4-year degree,” Sen. Mark Kelly (D-AZ) said. “Today’s announcement builds on years of bipartisan collaboration between Arizona’s federal, state, and local leaders and our economic development teams to make our state the best place in the country to build these one-of-a-kind facilities. By boosting domestic microchip development and production, we’re reducing reliance on foreign supply chains and making sure America leads the way in the industries of the future.”
BELOW: Full coverage of TSMC in Arizona
Former President Joe Biden in 2022 signed a sweeping $280 billion law, the CHIPS and Science Act, to try to reinvigorate chip manufacturing in the U.S., especially after the COVID-19 pandemic.
During the pandemic, chip factories, especially those overseas making the majority of processors, shut down. It had a ripple effect that led to wider problems, such as automobile factory assembly lines shutting down and fueled inflation.
Trump has criticized the law and taken a different approach, instead threatening to impose high tariffs on imported chips to bring chip manufacturing back to the U.S. Trump also has said companies like TSMC do not need federal tax incentives.
“Earlier this month, my team met with representatives of TSMC to discuss their plans for future jobs in Arizona, which should focus on tapping into our veteran workforce,” said U.S. Rep. Abe Hamadeh (R-CD 8), whose Congressional District serves as home to TSMC. “They are clearly committed to President Trump’s American First Manufacturing agenda, bringing high-paying employment opportunities to CD8 allowing US leaders to increase the quality of life for our residents.”
Trump has hosted multiple business leaders at the White House since he took office in January to tout a series of investments that aim to demonstrate his leadership is a boon for the U.S. economy. He’s also pointed to the tariff threats as prodding the investments.
“It’s the incentive we’ve created. Or the negative incentive,” Trump said.
In January, he appeared with the heads of OpenAI, Oracle and SoftBank at the White House as they announced plans for a new partnership to invest up to $500 billion for infrastructure tied to artificial intelligence. He also announced in January a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI.
Last week, after Apple CEO Tim Cook met with Trump at the White House, the company announced plans to invest more than $500 billion in the U.S. over the next four years, including plans for a new server factory in Texas. Trump said after their meeting that Cook promised him Apple’s manufacturing would shift from Mexico to the U.S.
“I don’t have time to do all of these announcements,” Trump joked Monday as he listed some of the other investments.
The Wall Street Journal first reported the planned announcement Monday.
The Associated Press contributed to this report.
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