- President Trump has announced a $165 billion investment with Taiwanese chipmaker TSMC. The deal focuses on AI chips and will reportedly create thousands of jobs nationwide.
- TSMC, which already operates in Arizona, plans to expand its U.S. facilities by building five new factories.
- This expansion comes amid Trump’s push to strengthen national security and reduce reliance on overseas production.
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President Donald Trump announced a $165 billion investment deal with Taiwan Semiconductor Manufacturing Company (TSMC) on Monday, March 3, at the White House. The deal aims to boost the U.S. semiconductor industry and help create thousands of jobs.
“The most powerful AI chips in the world will be made right here in America,” Trump said during his announcement.
TSMC is one of the world’s largest chipmakers and supplies technology for top companies like Intel, Apple and Nvidia. These chips power everything from cars to AI and cell phones. Trump emphasized that the investment would give the U.S. a significant stake in the industry while also strengthening national security.
Expansion plans in Arizona
While TSMC operates primarily overseas, it already has a presence in Arizona. Trump confirmed the company’s CEO plans to expand operations in the region. The Taiwanese company will soon begin constructing five state-of-the-art factories in the U.S., with a major focus on producing AI chips.
“Semiconductors are the backbone of the 21st-century economy, and really, without semiconductors, there is no economy,” Trump added.
Tariffs have impact on drawing businesses
Commerce Secretary Howard Lutnick explained that while the investment originated under the Biden administration, Trump’s tariffs have made the U.S. a more attractive location for companies like TSMC to build on American soil.
“They want to be in the greatest market in the world, and they want to avoid the tariffs. If they are not here, they have to suffer,” Lutnick said.
Federal workforce reduction
While the new investment brings significant growth to the U.S. semiconductor sector, Bloomberg reports the U.S. Chips Program Office, established under the 2022 Chips Act to boost manufacturing policies, is shrinking. The office, which employed 140 people under the Biden administration, is expected to lose 40% of its staff due to Trump’s efforts to reduce the size of the federal workforce.
Just last week, Apple made headlines with its own announcement of a $500 billion investment to expand its U.S. facilities over the next four years.
