The announcement comes amid Trump's consideration of tariffs on various industries, including semiconductors, to address trade imbalances. TSMC's decision is seen as influenced more by political pressure than tariffs, according to analysts. The investment also ties into broader efforts to make the U.S. a leader in AI technology, with companies like Nvidia and Apple relying on TSMC's U.S. plants. While the move supports Trump's manufacturing goals, it requires approval from Taiwan's government, which is reviewing the outbound investment. The investment is part of a larger trend of major technology companies pledging significant spending in the U.S. since Trump's return to power.
Key takeaways:
- TSMC plans to invest an additional $100 billion in US plants to boost chip output and support Trump's goal of increasing domestic manufacturing.
- The investment will expand TSMC's US presence to include multiple plants for advanced wafer fabrication and packaging.
- Nvidia and Apple are among the companies expected to benefit from TSMC's increased US production capacity.
- Trump's administration prefers using tariffs to encourage US chipmaking, contrasting with Biden's approach of government subsidies.