TSMC’s $100 Billion US Expansion Causes Controversy and Uncertainty among Citizens
President Trump and TSMC CEO C.C. Wei at the press conference on Monday announcing the Chip-Making Expansion. (Kyodo / AP)
The technology sector closely monitors the Trump administration’s trade policies as tariffs continue to impact the industry. Among the affected companies is Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor manufacturer.
President Donald Trump has previously criticized TSMC, alleging that it has “stolen US businesses,” calling for increased investment in the United States. In response, Monday, March 3, Trump and TSMC CEO Che Chia Wei announced a $100 billion expansion plan for the company’s US operations.
Taiwanese President Lai Ching-te described the announcement as a “historical moment” for US-Taiwan relations. Trump also praised the expansion.
“This is a tremendous move by the most powerful company in the world,” Trump said. “It’s a matter of economic security, it’s also a matter of national security for us.”
Despite having major US clients, such as Apple, Nvidia, and AMD, TSMC primarily manufactures in Taiwan rather than the United States. The new expansion plans to construct three additional semiconductor plants in the US, supplementing its existing facility in Arizona.
The move is seen as part of a broader effort by the US to strengthen its semiconductor industry and increase its presence in the global market. Trump stated that with TSMC’s investment, the US could reach the top 40% of the world’s chip production market.
TSMC announced plans to expand its presence in the United States amid the tariff pressure. Agence France-Presse / WSJ
Wei previously admitted he was nervous about tariff escalations and hoped the expansion would relieve trade pressures. However, citizens in Taiwan have expressed concern that the move could weaken the “silicon shield,” a theory that suggests Taiwan’s dominance in semiconductor manufacturing acts as a deterrent against a potential Chinese military attack.
In response, President Lai reassured the public during a press conference on Thursday, saying “Taiwan's industries have been moving westward, southward, and northward, and the strength that the industries have accumulated over the last few decades has helped Taiwan to confidently cross the Pacific Ocean and expand eastward to the American continent,” further emphasizing how the expansion plan could benefit Taiwan, TSMC, and the United States.
The expansion will bring TSMC’s total number of US fabrication plants to six, further strengthening the company’s presence in the American semiconductor market. A spokesperson for Nvidia, one of TSMC’s top clients, called the move a “foundational pillar of a new technology supply chain centered in the US.”
TSMC is not the only tech giant investing in US manufacturing. Last week, Apple announced a $500 billion investment to expand its production facilities domestically to mitigate the impact of tariffs and secure its supply chain.