For ads-free news, click here.
From the Wall Street Journal: Taiwan Semiconductor Manufacturing Co. plans to invest at least $100 billion more in chip-manufacturing plants in the U.S. over the next several years under a plan announced Monday by the company and President Trump.
TSMC plans to use the funds to add to its chip manufacturing in Arizona. It will construct three new chip plants, two chip-packaging plants and a research and development center, Chief Executive C.C. Wei said during a White House appearance with the president.
Such an expansion would advance a long-pursued U.S. goal to revive the domestic semiconductor industry after manufacturing fled largely to Asian countries in recent decades.
Trump called building up the industry a matter of economic and national security, as well as evidence that his tariff threats were working.
“If they did [the chips] in Taiwan to send them here they’ll have 25% or $30% or 50% or whatever the number may be” in tariffs, Trump said. “It’ll go only up. By doing it here, there’s no tariffs.”
The Wall Street Journal explains that TSMC had already announced in 2020 that it would build a chip factory there for $12 billion, and mass production started late last year. The company then planned two additional factories, for a total of $65 billion.
Now, with Monday’s announcement, TSMC’s investment in the U.S. has grown to a total of $165 billion.
Commerce Secretary Howard Lutnick explained the benefits of having the manufacturing inside the United States.
Commerce Secretary @howardlutnick: “@POTUS has made it a fundamental objective to bring semiconductor chip manufacturing back home to America… you’re seeing the power of Donald Trump’s presidency because TSMC… is coming to America with a $100 billion investment.” pic.twitter.com/XlELKD52yO
— Rapid Response 47 (@RapidResponse47) March 3, 2025
President Trump explained that without the chips, “nothing runs today.”
.@POTUS on bringing semiconductor manufacturing back home: “Without the chips and semiconductors nothing runs today… We thought it was very important… in terms of national security.” pic.twitter.com/xFWYhRYJXs
— Rapid Response 47 (@RapidResponse47) March 3, 2025
A reporter asked, “Could this minimize the impact on the U.S. with chips should China decide to isolate Taiwan or China decide to take Taiwan?”
President Trump responded, “I can’t say minimize, that would be a catastrophic event…but 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…if something should happen with Taiwan.”
Reporter: “Could this minimize the impact on the U.S. with chips should China decide to isolate Taiwan or China decide to take Taiwan?”
President Trump: “I can’t say minimize that would be a catastrophic event…but it will at least give us a position where we have in this very… pic.twitter.com/9nNFl2mdHo
— RedWave Press (@RedWave_Press) March 3, 2025
WATCH the full announcement in the video below:
Big news + important reminder of mutual benefits from US-Taiwan relations. TSMC expands in world’s largest market, moves production closer to its customers, and taps into US talent pipeline. US benefits from reliable access to advanced chips. https://t.co/RcKeNk9LyY via @WSJ
— Ryan Hass (@ryanl_hass) March 3, 2025
Follow us on X (Formerly Twitter.)
The DML News App: www.X.com/DMLNewsApp
The Dennis Michael Lynch Podcast archive is available below, with the most recent on top. Never miss an episode. Subscribe to the show by downloading The DML News App or go to Apple Podcasts.
