TSMC, the world’s biggest chipmaker, has reportedly just announced it plans to invest another $100 billion in the US (via AP News) to expand its chip production in the country. ‘Another’, that is, on top of the $100 billion the company committed to last year.
That previous $100 billion was in addition to the $65 billion that TSMC had already said it planned to put into the US. Last year’s $100 billion pledge was, according to President Trump, at his rather unsubtle behest: “All I did is say if you don’t build your plant here you’re gonna pay a big tax… 25, maybe 50, maybe 75, maybe 100%.” This, of course, was in the wake of the US doing the hokey cokey with various tariffs.
It’s unclear whether TSMC’s new $100 billion plans are the result of similar conversations, and if so to what extent.
According to the Associated Press, during today’s earnings conference, the CEO C. C. Wei expressed that the new investments are to “support the strong multiyear demand from our leading US customers.”