In a significant move for the semiconductor industry, TSMC, the world's largest contract chipmaker, has unveiled plans for a massive $160 billion investment in Phoenix, Arizona. This initiative not only aims to bolster chip production but also to enhance the strategic partnership between Taiwan and the United States, as emphasized in the official statement.
TSMC's Expansion Efforts in Phoenix
The investment will facilitate the establishment of multiple chip manufacturing facilities in Phoenix, marking a pivotal step in TSMC's expansion efforts. Taiwan's President, Lai Ching-te, highlighted that this collaboration underscores the growing ties between the tech sectors of both nations, reinforcing their economic interdependence.
Response to US Calls for Domestic Production
This announcement comes in the wake of US President Donald Trump’s calls for major chip manufacturers to increase their presence in the United States. The emphasis on domestic production is seen as crucial for national security and technological leadership, making TSMC's investment a timely response to these demands.
On January 13, 2026, President Trump announced a $4 billion investment by Ford to create 4,000 jobs, a move that contrasts with TSMC's recent $160 billion investment in chip production. For more details, see the full announcement here.
