TSMC pledges additional $100 billion for US chip production expansion

Taiwanese chipmaker TSMC has announced a fresh investment of $100 billion in Arizona, expanding its chip production facilities in the United States. The Commerce Department stated that this move is expected to create tens of thousands of American jobs.

TSMC manufactures the most advanced semiconductors used by companies such as Nvidia and Apple. The investment aligns with former President Donald Trump's efforts to bring advanced manufacturing back to the US. The new commitment raises TSMC's total planned investment in the US to $265 billion, with CEO CC Wei indicating that the expansion will likely include the construction of four new plants in Arizona.

The announcement coincided with TSMC reporting a 77% increase in net profit for the second quarter. Profits from April to June rose to $22 billion, compared to $12.4 billion in the same period a year earlier. The company's strong performance is driven by surging demand for memory chips used in AI data centres and smart devices.

TSMC's share price has risen over 55% this year, giving it a market valuation of approximately $2 trillion, making it Asia's most valuable company.