TSMC TO INVEST $100BN MORE IN US ARIZONA EXPANSION

Taiwan Semiconductor Manufacturing Company announced an additional $100bn (£74bn) investment in Arizona, raising its total commitment to the United States to $265bn. The Commerce Department stated the expansion will create tens of thousands of American jobs. Chief executive CC Wei said the company expects to build four new plants in Arizona as a result of the increased investment. The announcement coincided with TSMC reporting a 77% jump in second-quarter net profits to $22bn, compared with $12.4bn in the same period a year earlier.

TSMC manufactures advanced chips designed by companies including Nvidia and Apple. Wei did not specify a timeline for construction of the new plants, stating the pace would depend on market conditions. The four new facilities would supplement eight plants already under construction or in planning stages. According to Wei, the investment would strengthen the US semiconductor supply chain and support growth in high-technology employment. Demand for memory chips has increased substantially in recent years, driven by artificial intelligence data centres and smart devices.

The move aligns with President Donald Trump's stated objective of expanding advanced semiconductor manufacturing within the United States. Trump has previously attributed a prior TSMC investment decision in the US to his threatened tariffs on Taiwan and the global semiconductor sector. In January, the US announced it had agreed to reduce tariffs on Taiwanese goods to 15% in exchange for commitments to invest hundreds of billions of dollars in domestic semiconductor production. Commerce Secretary Howard Lutnick stated the announcement reflected Trump's push to attract corporate investment in American manufacturing.