According to Reuters, TSMC announced on Thursday, July 16 that it will increase its investment in the United States by US$100 billion.
Raymond Greene, Director of the American Institute in Taiwan, said the investment is the best illustration of the Taiwan-U.S. partnership and fully demonstrates the mutual trust and confidence between the two sides. Analysts say the investment will help strengthen relations between Taiwan and the Trump administration, according to Taiwan’s Central News Agency.
Raymond Greene: A reflection of the Taiwan-US economic partnership
C.C. Wei, Chairman and CEO of TSMC , announced on July 16 in an earnings conference that the company will invest an additional US$100 billion in Arizona.
The investment is expected to fund the construction of four more semiconductor fabrication plants as well as an advanced packaging facility, in order to meet the strong demand from U.S. customers in the coming years.
In response, Raymond Greene posted on the official Facebook page of the American Institute in Taiwan congratulating TSMC on its decision to make a further US$100 billion investment in the United States. He said the investment clearly demonstrates the trust and confidence that the United States and Taiwan have in one another, which lies at the core of the Taiwan-U.S. partnership.
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Greene noted that the investment will ensure TSMC remains close to its major U.S. customers, enabling the company to respond more quickly to the growing global demand for advanced semiconductors while building a resilient supply chain—an essential foundation for the economic prosperity of both the United States and Taiwan.
He emphasized that proximity to customers is critical. By locating its operations closer to end users, TSMC will be better positioned to respond rapidly to market demand. As the company continues to expand its global footprint, the foundation of Taiwan’s semiconductor industry will become even stronger and more resilient.
Greene added that TSMC’s investment announcement is the clearest illustration of the Taiwan-U.S. economic partnership. Robust two-way investment benefits workers, consumers, and industries on both sides while further strengthening a partnership that will support the development of next-generation technologies.
US Commerce Department: Investment to create tens of thousands of jobs
The U.S. Department of Commerce said in a press release that the announcement marks a significant outcome of the historic Taiwan-U.S. trade and investment agreement reached in January this year, according to Liberty Times.
It also builds on the investment plan jointly announced in March 2025 by the U.S. President Donald Trump and Commerce Secretary Howard Lutnick.
At the time, TSMC had already pledged to invest an additional US$100 billion on top of its original US$65 billion commitment in the United States. The newly announced US$100 billion investment brings the company’s total U.S. investment to a record US$265 billion.
The U.S. Department of Commerce said the additional US$100 billion investment will further expand TSMC’s construction of advanced semiconductor fabrication plants and advanced packaging facilities in the United States. The investment is expected to create tens of thousands of jobs and generate billions of dollars in economic benefits. The department said the announcement underscores the Trump administration’s continued efforts to revive American manufacturing and strengthen U.S. technological leadership through the Taiwan-U.S. trade and investment agreement, strategic cooperation, and increased investment.
US scholar: Investment strengthens Taiwan’s ties with the Trump administration
Michael Cunningham, a senior fellow at the Washington-based Stimson Center, told Taiwan’s Central News Agency that TSMC’s investment in the United States carries significant political implications. High-profile investments of this scale help strengthen relations between Taiwan and the Trump administration. He noted that the Trump administration is eager to relocate more semiconductor manufacturing to the United States and has shown a willingness to apply pressure to achieve that objective.
Since returning to the White House, President Donald Trump has repeatedly singled out Taiwan in discussions about the semiconductor industry.
Cunningham said this is not TSMC’s first major investment in the United States, nor is it likely to be the last. Looking ahead, he said the Trump administration will likely seek even greater investment from Taiwan and Taiwanese companies in support of President Trump’s policy agenda. Maintaining this relationship, he added, will require ongoing effort.
He emphasized that the investment does not alter the reality that the vast majority of the world’s most advanced chips will continue to be manufactured in Taiwan. TSMC and other foundries are continuing to build new fabrication plants on the island, and “the economic fundamentals that make Taiwan the world’s premier location for semiconductor manufacturing are not expected to change for the foreseeable future.”
Riley Walters, a senior fellow specializing in international economics and national security at the Washington-based Hudson Institute, told Liberty Times that the TSMC’s expanded investment fulfills Taiwan’s commitment to increase investment in the United States.
Under the Taiwan-U.S. Memorandum of Understanding on Investment Cooperation, signed in January, Taiwan agreed to support investment in the United States through two channels. The first involves US$250 billion in private-sector investment by Taiwanese companies across sectors including semiconductors, AI-related electronics manufacturing services, energy, and other industries. The second consists of Taiwanese government-backed credit guarantees, providing financial institutions with up to US$250 billion in corporate lending capacity to support investments in the United States.
