Trump announces Taiwanese chip giant’s $100bn investment in US plants
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Chips giant, the Taiwan Semiconductor Manufacturing Co (TSMC), will boost its US investment by $100bn, building new five new “cutting edge” fabrication plants on American soil,  has announced alongside the company’s chief executive.

Trump said the investment means TSMC, which supplies the vast majority of the world’s most advanced semiconductors, will avoid the tariffs he has publicly mulled imposing on the global industry, as he seeks to bring more manufacturing to the US and assert US trade dominance over both rivals and allies.

**CC Wei, the chief executive of , announced the investment at the White House alongside the president**, the US commerce secretary, Howard Lutnick, and David Sacks, a Trump adviser on AI and crypto. He said the new investment brings TSMC’s total investment in chip manufacturing in the US to $165bn.

“Taking away Taiwan’s technology sector will reduce the power of Taiwan’s' ‘silicon shield’,” said James Yifan Chen, assistant professor in the department of diplomacy and international relations at Tamkang University in Taiwan.

On Monday Trump said a Chinese invasion of Taiwan would be “catastrophic event”.

He said the TSMC investment “will at least give us a position where we have, in this very, very important business, we would have a very big part of it in the United States.”

Taiwan’s premier, , on Tuesday said the involvement of various industries in the global supply chain required close cooperation with the government. “Keeping roots in Taiwan and continuing to strengthen Taiwan is the shared stance of the country, government, and industry, and it will remain unwavering,” he said, according to local media.

Taiwan’s government has said it will review the investment, taking into account “the company’s development while ensuring the overall competitiveness of the semiconductor industry and the country”.

“The close cooperation in high-tech industries between Taiwan and the United States has made Taiwan the most important partner for the United States in maintaining its leading position in high-tech and technology industries,” cabinet spokeswoman Michelle Lee said.

Taiwan’s department of investment review spokesman Su Chi-yen told AFP the government could potentially veto the investment, but that “most past rejections were due to incomplete documentation.”

Last April, Wei had agreed to expand TSMC’s planned spending in the US by $25bn to $65bn and to add two more factories to its site in Arizona by 2030.

TSMC is the largest contract chipmaker in the world, and it first set up shop in Arizona in 2020, with production there beginning late last year. The company’s further expansion in the US would bring additional investment to semiconductor manufacturing at a time when much of the industry is consolidated in Asia.

The chips that TSMC produces are used in most all parts of the tech sector – from smartphones and car consoles to the servers used to power artificial intelligence.



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