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What TSMC's $165 billion investment in the US may mean for the chip industry

Mar 04, 2025 - zdnet.com
Taiwan Semiconductor Manufacturing Company (TSMC) announced a $165 billion investment in the US to build multiple chip factories, marking the largest single foreign direct investment in US history. This expansion, which includes $100 billion in new spending, aims to focus on advanced technologies such as AI chips, traditionally produced in Taiwan. TSMC's investment is expected to create tens of thousands of high-tech jobs and support 40,000 construction jobs over the next four years. The company already operates a factory in Phoenix, Arizona, and plans to add three more factories and an R&D center in the US.

Meanwhile, Intel, facing declining sales and market share, is seeking customers for its US factories. Nvidia and Broadcom are testing Intel's facilities for potential manufacturing contracts, while AMD is also considering using Intel's factories. However, Intel's manufacturing process delays, particularly with the 18A chip method, could impact these deals. TSMC has reportedly discussed with the Trump administration the possibility of absorbing some of Intel's US factories, and Broadcom has considered purchasing Intel's chip-design assets.

Key takeaways:

  • TSMC announced a $165 billion investment in the US to build multiple chip factories, marking the largest single foreign direct investment in US history.
  • The investment is expected to create tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D.
  • Intel is seeking customers for its US factories, with Nvidia and Broadcom testing Intel's manufacturing capabilities despite Intel's ongoing manufacturing delays.
  • TSMC has had discussions with the Trump administration about potentially absorbing some of Intel's US factories, while Broadcom has considered purchasing Intel's chip-design assets.
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