The world’s largest chipmaker and foundry Taiwan Semiconductor Manufacturing Co. (TSMC) plans to expand its investment in semiconductor manufacturing in the U.S. with an additional $100 billion at its Phoenix, Arizona, location where it has already invested $65 billion.
The expansion will include:
- Three new fabrication plants
- Two advanced packaging facilities
- One R&D team center
It is the largest single foreign direct investment in U.S. history.
Previous investments
The move to invest more heavily in the U.S. comes after Apple announced in February 2025 that it plans to invest $500 billion domestically. TSMC previously said it would build two fabs in Phoenix and was awarded $6.6 billion in direct funding through the CHIPS and Science Act.
At the time, TSMC said its original $65 billion investment in the two fabs was the largest foreign direct investment in Arizona history and the largest direct investments in a greenfield project in U.S. history. An additional $100 billion will surpass and add to this total.
The expansion is expected to support 40,000 construction jobs over the next four years, and it will reportedly create tens of thousands of high-tech jobs in R&D and advanced manufacturing.
Indirect growth
Previously, the state of Arizona said that more than 40 semiconductor projects to the tune of $102 billion in capital investment and more than 15,000 direct jobs were linked to the two fabs from TSMC and the expansion of facilities by Intel in Arizona.
The projects in the state include the construction of semiconductor fabs, advanced packaging and R&D facilities as well as expansion of existing facilities and other investments to secure chip equipment, supply chain and workforce development.
The expansion by TSMC is expected to drive another $200 billion of indirect economic output in Arizona and across the U.S. in the next decade, the pure play foundry said. Customers at the facility include:
- Apple
- Nvidia
- AMD
- Broadcom
- Qualcomm
Why it matters
The outbreak of COVID-19 in 2020 showed how flawed the aggregation of the semiconductor supply chain was when battling a global event. As such, lawmakers, chipmakers and trade organizations in the U.S. pushed the government to regain a foothold in the semiconductor manufacturing sector.
The hope is if something like this happens again, or any other conflict or global event occurs, not only will the supply chain be more resilient, but U.S. national security interests will remain intact with regional manufacturing. Additionally, the financial boon of making semiconductors domestically — from job creation to increased private investments — will help the country’s GDP growth.
According to the Semiconductor Industry Association (SIA), since the inception of the CHIPS Act, over 80 new projects across 25 states have been announced by those in the semiconductor ecosystem. This totals about $450 billion in private investments. These projects will also create more than 56,000 direct jobs and support thousands of additional jobs in the economy.
This will obviously increase due to this new expanded investment from the world’s largest chipmaker.
