TSMC Invests $100 Billion to Expand US Chip Manufacturing

TSMC has announced a significant expansion of its US chip manufacturing operations with a $100 billion investment. The funds will be used to build two additional factories in Phoenix, Arizona, in addition to the three factories the company has already committed to building in the state. The move is part of a broader push by the Biden administration to bolster domestic chip production amid a global shortage. TSMC's expansion also aligns with the administration's CHIPS Act, which awarded the company $6.6 billion to support its US operations.

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TSMC's Commitment to Advanced Chip Production

TSMC began producing 4-nanometer chips at its Arizona plant in January, but its future factories are expected to make chips using 2nm or even more advanced process technology by the end of the decade. The company's CEO, C.C. Wei, emphasized TSMC's commitment to producing the most advanced chips on US soil during a recent press conference.

Impact on US Economy and Job Market

The expansion of TSMC's US operations is expected to create thousands of high-paying jobs and boost the production of AI chips. This move comes as other tech giants like Apple also announce significant investments in US operations, indicating a growing trend of tech industry growth within the country.

Political Influence on Tech Investments

The timing of these investments isn't coincidental. President Trump has announced plans to introduce tariffs on semiconductors and other goods as soon as April. This move, along with additional taxes on imports from Mexico, Canada, and China, could have significant implications for the tech industry and its supply chains.