On top of the $65 billion in investments the chip giant Taiwan Semiconductor Manufacturing Co. had already committed, President Donald Trump revealed Monday that the business would invest an additional $100 billion in the United States.
The largest semiconductor factory in the world, TSMC, makes semiconductors for firms like Apple, Intel, and Nvidia.
The company had already begun constructing three plants in Arizona after the Biden administration offered billions in subsidies.
Its 4-nanometer chips are now being mass-produced at its first facility in Arizona.
Trump, who appeared with TSMC’s chief executive officer C. C. Wei at the White House, called it a “tremendous move” and “a matter of economic security.”
The foundation of the economy in the twenty-first century is semiconductors.
Additionally, the president stated that there would be no economy without semiconductors.
“We must be able to produce the chips and semiconductors that we need in American factories using American labor and American skill, powering everything from AI to cars to advanced manufacturing.”
Three additional chip manufacturing units and two packaging facilities in Arizona will receive the investment.
The $165 billion investment “is going to create thousands of high-paying jobs.”
The CHIPS and Science Act, a comprehensive $280 billion law, was enacted by former President Joe Biden in 2022 in an effort to boost American chip manufacture, particularly in the wake of the COVID-19 epidemic.
Chip factories closed during the pandemic, particularly those located abroad that produce the majority of processors.
Wider issues, such the closure of auto plant assembly lines and increased prices, resulted from its knock-on effects.
In order to bring chip manufacturing back to the United States, Trump has criticized the law and adopted a different strategy, threatening to impose high tariffs on imported chips.
Trump has also claimed that federal tax breaks are unnecessary for businesses like TSMC.
About 40 employees of the Commerce Department who worked on the Chips Act’s implementation were let go on Monday as part of the Trump administration’s massive efforts to reduce the size of the federal workforce.
When asked if the new investment could minimize impact on the U.S. should China either isolate or seize Taiwan, Trump said he couldn’t say “minimize” because “that would be a catastrophic event obviously.”
The island of Taiwan separated from the Chinese mainland in 1949 as a result of a civil war.
Beijing asserts its sovereignty over the island and has increased diplomatic and military pressure on its rulers.
“It will at least give us a position where we have, in this very, very important business, we would have a very big part of it in the United States,” Trump stated in reference to the chip manufacturing situation.
Whether the investment would secure the autonomous island, which Beijing views as belonging to Chinese territory, was not something he said.
Taiwanese companies have invested more than 40% of the island’s total foreign investments in the United States, according to the Taipei Economic and Cultural Representative Office, the island’s de facto embassy in the US.
The Taiwanese government is “glad” to see Taiwanese companies increasing their investments in the United States and fostering close supply chain cooperation between the two countries.
According to the agency, “it also brings the economic and trade relations closer.”
Taipei is hopeful the enhanced investment pledge would help maintain a strong U.S.-Taiwan relationship, according to Bonnie Glaser, managing director of the Indo-Pacific program at the German Marshall Fund of the U.S.
She stated, “It is clear that Taiwan is stepping up in a way that advances and supports President Trump’s priorities.” “The US will benefit greatly from TSMC’s investment.”
Since taking office, Trump has stated that Taiwan should pay the United States for its military defense, but he has not yet stated his position on U.S. assistance for Taiwan’s security.
Laptops 1000Since taking office in January, Trump has welcomed a number of corporate leaders to the White House to promote a number of initiatives meant to show that his leadership is beneficial to the American economy.
Additionally, he has cited the possibility of tariffs as a motivator for the investments.
It’s the motivator we came up with or the deterrent,” Trump stated.
He joined the leaders of OpenAI, Oracle, and SoftBank at the White House in January to announce plans for a new partnership that would invest up to $500 billion in artificial intelligence-related infrastructure.
In January, he also revealed that DAMAC Properties had invested $20 billion in the United Arab Emirates to construct AI-connected data centers.
Following their meeting at the White House last week, Apple CEO Tim Cook revealed intentions to invest over $500 billion in the United States over the next four years, including the construction of a new server facility in Texas.
Following their discussion, Trump claimed that Cook had assured him that Apple will move its production from Mexico to the United States.
As he enumerated some of the other investments on Monday, Trump joked, “I don’t have time to do all of these announcements.”
