Last week, Apple unveiled a plan to invest $500 billion in the U.S. economy over the coming four years. In response, key partner TSMC is poised to announce its own commitment. According to The Wall Street Journal, TSMC is looking to invest $100 billion in expanding U.S. manufacturing over the next four years, with a formal announcement expected later today.
TSMC’s Significant Investment in U.S. Chip Manufacturing
In a report by Yang Jie, Meridith McGraw, and Asa Fitch for The Wall Street Journal:
Taiwan Semiconductor Manufacturing Co. plans to allocate $100 billion towards chip-manufacturing facilities in the United States over the next four years, with an announcement expected later today from President Trump, as per sources familiar with the initiative.
This funding will facilitate the establishment of advanced chip-making facilities, contributing to a longstanding U.S. objective of revitalizing its domestic semiconductor industry after much of the production moved to Asian countries in recent decades.
The specifics regarding whether the $100 billion commitment is entirely new or includes existing pledges from TSMC remain unclear in the WSJ’s report. We hope to gain clarity through the forthcoming official announcement.
Currently, TSMC manages manufacturing plants in Arizona; however, the majority of its operations are based overseas, primarily in Taiwan.
The U.S. facilities are presently responsible for producing two Apple chip models, neither of which are among the latest cutting-edge chips in Apple’s offerings.
Chips currently produced in the U.S. include:
- the A16 Bionic
- the S9 chip for the Apple Watch
Recently, TSMC’s CEO noted that it is improbable for the U.S. to become the go-to location for the most advanced chips, citing regulatory challenges that hinder the company’s ability to innovate as swiftly as it does in Taiwan.
It will be intriguing to see if this position changes in light of the official announcement. Perhaps discussions with President Trump’s administration have led to a new framework.
If TSMC’s investments enable the production of flagship Apple chips in the U.S., it would mark a significant shift from the current norms.
