TSMC commits one hundred billion dollars to US chip factories

TSMC is investing one hundred billion dollars in new chip factories in the United States, a major expansion of its American manufacturing presence. The Taiwanese semiconductor company confirmed the commitment alongside its quarterly results, with the planned fabs set to produce chips using a 2-nanometre (2nm) process.

The investment builds on existing TSMC projects in Arizona, though exact locations and a detailed timeline for the new facilities have not been fully confirmed. The 2nm process is among the most advanced manufacturing technologies in development, enabling more computing power at lower energy use for AI accelerators, smartphones and data centres.

The expansion aligns with Washington’s push to strengthen domestic chip production under the CHIPS and Science Act, signed by President Biden in 2022. The policy aims to reduce strategic dependence on Taiwan, where much of the world’s most advanced chip manufacturing remains concentrated amid geopolitical tensions involving China.

Europe’s semiconductor plans are smaller by comparison. The European Chips Act, adopted in 2023, makes 43 billion euros available to double Europe’s share of global chip production to twenty percent by 2030. ASML in Eindhoven stands to remain central to the buildout, as its lithography systems are essential for advanced production lines.