TSMC Stays The Course On $65 Bn US Investment Despite Political Shifts

Taiwan Semiconductor Manufacturing Company (TSMC) confirmed that its investment plans in the United States remain on course, despite shifts in US political dynamics. The company’s USD 65 billion investment in Arizona semiconductor factories will proceed unchanged, following Republican Donald Trump's election as the next US president.

TSMC, the world’s largest contract chipmaker and a key supplier to technology giants Apple and Nvidia, responded on Thursday to questions about its US investment plan following Trump’s election. In an emailed statement, TSMC stated, “Our investment plan in the US remains unchanged,” without providing further details. The substantial USD 65 billion investment is part of TSMC's commitment to building state-of-the-art semiconductor facilities in Arizona, a decision encouraged by the Biden administration's initiatives to bolster domestic chip production.

During his campaign, Trump had accused Taiwan of impacting the American semiconductor industry. However, TSMC’s strong stock performance has shown resilience to these concerns. TSMC’s US unit has also secured a USD 6.6 billion subsidy from the Commerce Department in April as part of an initial agreement to enhance advanced semiconductor production in Phoenix, Arizona.

TSMC, along with GlobalFoundries and another chipmaker, is expected to receive final subsidies through the Biden administration’s Chips and Science Act, sources indicate. The stock market has reacted positively to TSMC’s continued expansion, especially amid the AI boom. On Thursday, TSMC’s American Depositary Receipts rose by 4.1 per cent, following Nvidia's record-setting stock performance, which propelled its market value beyond USD 3.6 trillion recently.