Taiwan Semiconductor Manufacturing Company (TSMC) plans to spend $165 billion in the United States over four years, expanding its operations in Arizona to make chips for artificial intelligence and other high-tech applications. The move has raised concerns at home, with President Lai Ching-te seeking to reassure citizens that the plan will benefit Taiwan.
The US chip giant announced the expansion after President Trump pressed Taiwan to loosen its dominance in advanced semiconductors and move production to the United States. TSMC’s commitment would lift its planned spending in the US to $165 billion, more than double its previous commitments there.
President Lai stated that the plan is good for TSMC, Taiwan, and the US, citing the company’s growth and international cooperation opportunities. However, not everyone in Taiwan is convinced, with some questioning what benefits the country will gain from the investment.
The Taiwanese government has been trying to respond to complaints from President Trump about Taiwan’s defense spending and trade surplus with the US. The move could be seen as a response to Trump’s pressure, but it also raises concerns about the country’s sovereignty and potential risks from China, which claims Taiwan as its territory.
TSMC’s expansion in Arizona will add 25,000 jobs and create a research and development center to develop production processes. Apple is the facility’s largest customer, with TSMC also making chips for other major companies such as Nvidia, AMD, Qualcomm, and Broadcom.
Source: https://www.nytimes.com/2025/03/06/world/asia/taiwan-tsmc-chips-arizona.html