TSMC's $100 Billion Chip Expansion in the U.S.: A National Security Boost

Taiwan's TSMC plans a $100 billion investment to build five chip facilities in the U.S., addressing over-reliance concerns. The move supports national security, reduces semiconductor dependency on Asia, and aligns with ongoing U.S. initiatives to bolster domestic chip production and combat supply chain risks.

In a bold move to bolster U.S. domestic chip-making capabilities, Taiwan Semiconductor Manufacturing Co (TSMC) has announced a monumental $100 billion investment in American soil. Revealed during a meeting between TSMC's CEO C.C. Wei and former President Donald Trump, the initiative aims to establish five additional chip facilities.

This investment seeks to mitigate risks associated with over-reliance on Taiwan for semiconductors, amid increasing geopolitical tensions with China. The expansion could cover costs for three new chip fabrication plants, two advanced packaging facilities, and a significant research and development center.

While the Taiwanese company confronts higher production costs in the United States, it moves forward with this strategic pivot. The investment aligns with the goals of the CHIPS and Science Act, further advancing national security and fortifying supply chains. Despite Taiwan Cabinet's scrutiny, the expansion is seen as crucial for the competitiveness of Taiwanese technology internationally.

(With inputs from agencies.)