Taipei: American Institute in Taiwan (AIT) Director Raymond Greene on Thursday welcomed Taiwan Semiconductor Manufacturing Co.'s (TSMC) plan to invest an additional US$100 billion in the United States, describing it as a sign of confidence in bilateral ties.
According to Focus Taiwan, the investment will allow TSMC to operate closer to its largest American customers, respond more quickly to growing global demand for advanced chips, and contribute to more resilient supply chains. Greene emphasized the importance of proximity to end users, stating that it would enable TSMC to "move at market speed" as artificial intelligence and high-performance computing transform industries.
There are concerns that TSMC's overseas investment plans, notably in the U.S., could erode Taiwan's leading position in advanced semiconductors, potentially impacting the "silicon shield" that encourages foreign powers to defend Taiwan if attacked by China. U.S. President Donald Trump has addressed these concerns, claiming the U.S. will hold 50 percent of the world's semiconductor manufacturing capacity by 2028, though experts have expressed skepticism about this target.
Greene maintained that Taiwan will remain a cornerstone of the semiconductor industry despite TSMC's international expansion. He cited growth projections for Taiwan's semiconductor output, expected to rise from around NT$4.3 trillion (US$133.27 billion) in 2023 to NT$8.4 trillion in 2026.
TSMC Chairman C.C. Wei announced the additional investment pledge at the chipmaker's second-quarter earnings conference on Thursday. This new plan increases TSMC's total investment commitment in Arizona to US$265 billion. The U.S. Department of Commerce noted that the investment would add four advanced semiconductor manufacturing facilities, expanding TSMC's planned U.S. presence to 12 leading-edge semiconductor and packaging facilities.
U.S. Commerce Secretary Howard Lutnick highlighted the creation of tens of thousands of American jobs and the restoration of advanced semiconductor manufacturing in the U.S. as key outcomes of this investment. Wei expressed gratitude towards the Trump administration, Lutnick, and TSMC's leading American customers for their support.
Wei explained that the additional investment would fund logic wafer fabs using 2-nanometer and more advanced processes, alongside advanced packaging facilities to meet strong multi-year demand from leading U.S. customers. The expansion is expected to enhance the U.S. semiconductor ecosystem, strengthen supply chains, and create jobs.
Although Wei did not provide a specific timetable for the new investment pledge, he stated that progress would depend on market conditions and customer demand, with TSMC aiming to proceed "as fast as possible." Prior to the new pledge, TSMC had committed US$165 billion to build six fabs, two packaging plants, and one R and D center in Arizona. Currently, the first fab is in mass production, construction on the second fab is complete with mass production slated for the second half of 2027, the third fab is under construction, and ground has been broken on the fourth fab. Work on the first advanced packaging plant is expected to begin in 2027.