TSMC plans to invest $100 billion in the U.S., building on a previous $65 billion commitment, marking the largest foreign direct investment in American history at $165 billion. This investment focuses on advanced AI chip production and includes establishing three new factories and a research center, potentially creating 40,000 construction jobs and high-paying technical positions. Meanwhile, Intel faces challenges with declining sales and manufacturing delays, as TSMC explores acquiring some of Intel’s U.S. facilities.
TSMC’s Historic Investment in the U.S.
In a significant announcement made during a press conference at the White House, President Donald Trump revealed that Taiwan Semiconductor Manufacturing Company (TSMC), the leading semiconductor manufacturer globally, will be investing a staggering $100 billion in the United States over the coming years. This investment builds upon TSMC’s prior commitment of $65 billion, culminating in what the company describes as the “largest foreign direct investment in U.S. history” with a total of $165 billion.
Focus on Cutting-Edge AI Chip Production
The planned expenditure aims to enhance “advanced technologies,” particularly in the production of chips tailored for artificial intelligence. Historically, TSMC has been the primary producer of these vital components at its facilities in Taiwan, supplying nearly every major manufacturer, including Nvidia, which relies on TSMC for its high-performance Hopper and Blackwell AI graphics chips. President Trump emphasized that this investment signifies that “the most powerful AI chips in the world will be made in America.”
As part of this expansion, TSMC is set to establish three new factories across the United States alongside a research and development center. The company anticipates creating significant economic value, projecting the potential to support 40,000 construction jobs over the next four years and generating tens of thousands of high-paying technical jobs in advanced chip manufacturing and research.
Currently, TSMC operates a factory in Phoenix, Arizona, which commenced chip production last year and employs over 3,000 workers. The planned new facilities will further bolster TSMC’s presence in the American semiconductor landscape.
Intel’s Challenges Amidst Industry Competition
This strategic move by TSMC comes at a crucial time for Intel, which has faced persistent challenges, including declining sales and diminished market share. The chipmaker is actively seeking clients for its U.S. manufacturing capabilities. Reports indicate that leading AI chip manufacturers, Nvidia and Broadcom—both of whom are Intel’s competitors—are currently evaluating Intel’s factories for potential chip production contracts worth hundreds of millions.
Despite these developments, Intel is grappling with delays in its manufacturing processes, which have hindered its competitiveness against TSMC. Recent reports suggest that Intel’s latest 18A chip manufacturing technology has encountered yet another six-month setback. As a result, potential clients may struggle to produce chips using the 18A process before mid-2026. Meanwhile, TSMC has been in discussions with the Trump administration regarding the possibility of acquiring some of Intel’s U.S. manufacturing plants, with Broadcom also exploring the purchase of certain Intel chip design assets.