Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest $100 billion in the United States, in addition to the previously announced $65 billion.
This move was announced by President Donald Trump with TSMC’s CEO C.C. Wei at the White House, emphasizing the importance of economic security and the role of semiconductors in the modern economy.
The big picture: TSMC’s investment is expected to create thousands of high-paying jobs in the United States.
- The investment aligns with efforts to reinvigorate chip manufacturing in the US, particularly after the disruptions caused by the COVID-19 pandemic.
Driving the news: Trump’s approach to incentivizing TSMC’s investment differs from the method proposed in the CHIPS and Science Act signed by former President Joe Biden, highlighting potential tensions surrounding economic policies.
- The investment is seen as a strategic step to secure a substantial part of the chip manufacturing process within the US, amidst concerns about China’s territorial claims and potential geopolitical consequences.
What we’re watching: Taiwanese businesses’ substantial investments in the US, which exceed 40% of the island’s total foreign investments, indicate a deepening economic and trade relationship between the two sides.
Zoom in: TSMC’s investment adds to a series of other investments announced during Trump’s presidency, illustrating efforts to bolster the US economy and create a favorable investment environment, including a focus on technology and infrastructure.
- Several significant business leaders have announced substantial investment plans in collaboration with the US government, potentially indicating a shift in manufacturing and investment back to the US from other countries.
