Taiwan Semiconductor Manufacturing Company on July 16 announced an additional $100 billion U.S. investment, bringing its total committed investment in American chipmaking facilities to $265 billion — one of the largest direct foreign investments in U.S. manufacturing history.
The expanded commitment will result in 12 leading-edge semiconductor fabrication and packaging facilities on U.S. soil, according to the Commerce Department. TSMC manufactures the most advanced chips in the world, and bringing that production capability to the United States is a primary goal of federal semiconductor policy.
The investment follows trade negotiations between the U.S. and Taiwan earlier in 2026 and builds on commitments TSMC made under the CHIPS and Science Act, which provides federal incentives for domestic semiconductor manufacturing.
TSMC’s Arizona facilities are designed to produce the most advanced processor chips used in smartphones, artificial intelligence systems, data centers and military applications. The company currently manufactures more than 90% of the world’s most advanced chips at its facilities in Taiwan.
The $265 billion commitment addresses a national security vulnerability that policymakers in both parties have identified: the concentration of advanced chip production on an island 100 miles from mainland China.
The Semiconductor Industry Association has advocated for policies that attract foreign chipmakers to build U.S. facilities, arguing that domestic production capacity is essential for both economic competitiveness and defense supply chain security.
The investment is expected to create thousands of manufacturing and engineering jobs in Arizona and other states where TSMC is planning facilities. Supporting industries including chemical suppliers, equipment makers and construction firms will also benefit.