TSMC’s $100 billion commitment to the US market
The Taiwanese semiconductor giant TSMC is on track to unveil plans for an impressive $100 billion investment in the United States, according to recent reports.
As reported by the Wall Street Journal, former President Trump is set to make a significant announcement regarding this investment by March 3, 2025. The funds are earmarked for enhancing chip manufacturing capabilities; however, it remains unclear whether this will involve constructing entirely new facilities or expanding existing ones in Arizona.
What we do know is that TSMC aims to allocate this substantial investment over the next four years. This follows their earlier commitment of $12 billion towards building factories in Arizona back in 2020 and aligns with Trump’s strategy of boosting domestic processor production.
Previously critical of the CHIPS Act—under which TSMC received $6.6 billion from the Biden administration—Trump has suggested that imposing tariffs could incentivize manufacturers to set up operations within American borders. He has even floated ideas about a potential 25% levy on semiconductor imports at various times.
Currently underway are two chip plants being developed by TSMC in Arizona; however, these facilities alone may not fulfill production demands entirely. Reports indicate that many processors still require finishing work overseas, particularly in Taiwan or China—even after Amkor announced plans for a finishing facility late last year.
Moreover, there has been growing concern over safety protocols at TSMC’s first plant in Arizona, with allegations suggesting lax construction practices have contributed to several accidents and fatalities on-site.
There have also been claims regarding cultural differences affecting labor expectations between US workers and their Taiwanese counterparts. Notably, employees based in Taiwan report consistently working over 60 hours each week—a stark contrast to typical American work hours—which may underlie some discontent expressed by executives about workforce productivity levels stateside.