President Donald Trump has announced that Taiwanese Semiconductor Manufacturers (TSMC) is increasing its investment in the US to $100 billion. The move is expanding the company’s existing commitments and boosting its total investment in the country to $165 billion.
Stargate Project is a US-based artificial intelligence (AI) company founded through a collaboration between Openai, Softbank, Oracle, and MGX. The company has announced plans to invest up to $500 billion in AI infrastructure in the United States by 2029.
The announcement is a $500 billion AI initiative involving Openai, Softbank, Oracle and MGX, just over a month after President Trump announced the Stargate project.
Taiwan Chip Giant TSMC pledges to invest $100 million in the US amid Trump’s tariff threat
The funds will be used to build five advanced semiconductor manufacturing facilities in Arizona, creating thousands of expensive jobs. TSMC CEO CC Wei highlights the importance of this expansion, saying the company aims to strengthen the US chip industry while reducing its dependence on overseas manufacturing. This decision comes amid ongoing geopolitical concerns and driving supply chain resilience.
The investment is consistent with the Chips and Science Act, a $280 billion initiative that was signed into law in 2022. The law was introduced to boost domestic semiconductor production and reduce dependence on foreign supply chains. By increasing its footprint in the US, TSMC is expected to play a major role in advance of artificial intelligence and other high-tech industries.
Trump framed the announcement as a victory in America’s manufacturing and job creation. Industry experts view it as a strategic change in the global semiconductor landscape, positioning the US as a more important player in chip production. The expansion will also strengthen US-Taiwan relations at a time when semiconductor supply chains remain a critical issue of national security and economic stability.
With this investment, Arizona is set to become a key hub for chip manufacturing, attracting talent and innovation to the region. The first facility is expected to be up and running within the next few years, and the complete project will be rolled out in stages. As TSMC expands its operations, its impact on the technology sector, from home appliances to defense, is expected to be significant.
Trump’s announcement continued its efforts to strengthen US manufacturing and compete with other global semiconductor leaders. The investment is likely to encourage further discussions regarding government support for domestic chip production and long-term technology independence.
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