TSMC investing $100 billion in the US
Reports indicate that Apple’s iPhone processor supplier, TSMC, is prepared to announce a significant investment of $100 billion in the United States.
This investment comes on the heels of Apple’s commitment to invest $500 billion in US manufacturing, with TSMC looking to add its own substantial investment to the country. The chip maker has already been investing in creating processor foundries in Arizona.
The Wall Street Journal reports that President Trump will announce this $100 billion investment by March 3, 2025. The funds are earmarked for chip-making production, though it is unclear whether this will involve building new factories or expanding existing facilities in Arizona.
The $100 billion investment is planned to be spread over the next four years, following TSMC’s initial $12 billion investment in Arizona in 2020. This move aligns with President Trump’s push to boost processor production in the US.
President Trump has previously opposed the CHIPS Act, which saw TSMC receiving $6.6 billion in support from the Biden administration. Instead, he believes imposing tariffs would incentivize manufacturers to relocate to the US, suggesting a minimum 25% tariff on semiconductor imports at times.
Despite TSMC building two chip factories in Arizona, the facilities are not yet fully operational, with processors still being sent to Taiwan or China for finishing. Concerns have also been raised about the safety of construction methods at TSMC’s first Arizona plant, potentially leading to fatalities.
There have been accusations that TSMC has claimed US employees do not work as hard as their Taiwanese counterparts, likely stemming from the cultural differences in work ethic.