TSMC Lifts U.S. Investment Plan to $265 Billion With $100 Billion Expansion

Taiwan Semiconductor Manufacturing Co. NYSE:TSM, an advanced chip manufacturer that produces artificial-intelligence semiconductors for major customers, plans to invest an additional $100 billion in U.S. manufacturing capacity as Washington and Taipei move more semiconductor production onto American soil. The new commitment would increase TSMC's total planned U.S. investment to $265 billion, according to a U.S. official familiar with the plans. The additional funding is expected to support four more chip plants, eventually expanding the company's American manufacturing footprint to 10 fabrication plants and two packaging facilities. Investors may view the expansion as an important step in reducing U.S. reliance on advanced semiconductors produced in Taiwan, where geopolitical tensions and earthquake risks have increased concerns about the security of global chip supplies.

TSMC has steadily increased its U.S. investment plans as geopolitical considerations and the desire to operate closer to major American AI customers have become more important. Under the Biden administration's Chips Act program, the company agreed to invest $65 billion near Phoenix, Arizona, supported by a $6.6 billion U.S. government grant. Commerce Secretary Howard Lutnick later encouraged TSMC to expand that commitment, resulting in an increase to $165 billion in March 2025 before the latest planned addition. NVIDIA NASDAQ:NVDA, an artificial-intelligence chip company that relies on TSMC to manufacture its processors, could benefit from a broader U.S. production network as demand for advanced computing capacity continues to shape semiconductor investment decisions.

The four proposed facilities are expected to manufacture logic chips using 2-nanometer process technology, which the source described as the most advanced technology currently available commercially. Depending on market conditions, TSMC may instead develop three logic-chip plants and one packaging facility, although the official did not provide a timetable for the full investment program. TSMC's first fabrication plant outside Phoenix began volume production of 4-nanometer chips in late 2024, while its second plant is expected to begin producing more advanced 3-nanometer chips in the second half of next year. The scale of the proposed expansion suggests TSMC's U.S. operations could become increasingly important to its relationships with AI customers and to investor sentiment across the global semiconductor sector.