Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest an additional US$100 billion to expand its chip manufacturing operations in the United States (US). The move brings the company's total investment commitments to US$265 billion.
The new investment will be used to build four more chip factories, expanding TSMC's US operations to 10 fabrication plants and two chip packaging facilities.
The new factories are expected to produce 2-nanometer (2nm) chips, which are among the most advanced chip technologies currently available.
The US has long sought to reduce its dependence on Taiwan for high-tech chip production, as the island faces geopolitical risks from China's claims.
At the same time, TSMC is also increasing investments to meet high demand from major AI customers such as Nvidia.
Previously, TSMC agreed to invest US$65 billion in Arizona under the CHIPS Act during the Joe Biden administration, including receiving US$6.6 billion in US government grants. The investment value then increased to US$165 billion in 2025 before being increased to US$265 billion.
A broader agreement between Washington and Taipei also saw tariffs on Taiwan reduced to 15% in exchange for a commitment of US$250 billion in direct investment into the US economy.
Currently, TSMC's first plant in Arizona has begun commercial production of 4nm chips since the end of 2024. The second plant is scheduled to begin production of 3nm chips in the second half of next year.
