By The Epoch Times | Created at 2025-03-03 21:15:47 | Updated at 2025-03-04 04:59:36
8 hours ago
‘It’s a matter of economic security; it’s also a matter of national security for us,’ Trump said.
President Donald Trump announced a key partnership with a Taiwan-based semiconductor company on March 3, which will see billions invested in cutting-edge chip-making facilities as his administration looks to reshore manufacturing in the United States.
Taiwan Semiconductor Manufacturing Company (TSMC) will invest $100 billion in new manufacturing plants in the United States over the next three years.
“Taiwan Semiconductor is announcing that they will be investing at least $100 billion in dollars in new capital in the United States over the next short period of time to build state-of-the-art semiconductor manufacturing facilities,” Trump said.
“This is a tremendous thing for our country.”
TSMC, one of the world’s largest makers of semiconductor chips used in artificial intelligence systems, household appliances, and smartphones, has been a part of the tariff conversation in recent weeks. This was one reason why TSMC shares sank nearly 7 percent last month.
Trump said TSMC will construct “five cutting-edge fabrication facilities” in Arizona, immediately bringing thousands of jobs to the Grand Canyon State, which could grow to 25,000 in the long term.
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“We must be able to build the chips and semiconductors that we need right here in American factories with American skill and American labor. And that’s exactly what we’re doing,” the president said.
“It’s a matter of economic security; it’s also a matter of national security for us.”
C.C. Wei, the chairman and CEO of TSMC, explained the scope of his company’s investment.
“We have to thank President Trump’s vision and his support so TSMC starts the journey of establishing the [most] advanced chip manufacturing in Arizona. And now, let me proudly say the vision becomes reality in Finnish, Arizona, with 3000 employees,” he said.
“We are producing the most advanced chip.”
Staring Down the Tariff Hole
The past two administrations have discussed how most semiconductor manufacturing occurs in Asian markets, with Trump and former President Joe Biden taking different routes to return this industry to the United States.
Speaking to reporters from the White House in February, Trump stated that the United States needed to have chip manufacturing again since “everything is made in Taiwan.”
He later proposed introducing 25 percent tariffs on semiconductor imports to facilitate the transition.
“They left us, and they went to Taiwan, and we don’t want to give them billions of dollars like this ridiculous program that Biden has,” Trump said at a Jan. 27 meeting with congressional Republicans.
Trump stated that companies should not be subsidized but provided an incentive.
“The incentive is going to be, they’re not going to want to pay a 25, 50, or even 100 percent tax,” the president said.
Reiterating similar comments from the campaign trail, Trump told reporters late last month that if businesses start a plant or build a factory in the United States, there would be no tariff.
“So we want to give them a little bit of a chance,” Trump added.
Other White House officials, including Commerce Secretary Howard Lutnick, expressed concerns about the United States depending too much on Taiwan for semiconductors.
“We need to have, for national security, and for our business, we need to have that production,” Lutnick said at his confirmation hearing in January.
The previous administration had urged TSMC to outsource more of its production capabilities to the United States.
As part of 2022’s CHIPS and Science Act, TSMC was granted $6.6 billion in funding in November to construct three advanced chip-making plants in Arizona.
The former president’s legislative landmark dedicated nearly $53 billion over five years to help the United States regain market share in chip manufacturing.
A 2024 study by the Semiconductor Industry Association and the Boston Consulting Group determined that this investment could significantly enhance domestic chip manufacturing capacity in the next seven years.
When asked about this policy, Lutnick told lawmakers it was “an excellent down payment” to attract businesses that could rebuild the industry.
$2 Trillion in Private Investments
The new administration has scored several large private investment deals totaling more than $2 trillion.
Apple recently confirmed a multi-year $500 billion broad-based investment in the United States. This pledge will impact more than 20 states and create thousands of new jobs.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” Apple CEO Tim Cook said in a statement.
Japanese tech investment giant SoftBank announced $100 billion in U.S. investments targeting AI.
Dubai property billionaire Hussain Sajwani confirmed he would direct $20 billion toward constructing U.S. data centers.
Saudi Arabia plans to park $600 billion in the U.S. economy over the next four years.
Additionally, a trio of companies—OpenAI, Oracle, and SoftBank— launched a new Stargate Initiative program, which is a $500 billion blueprint to transform the country’s AI infrastructure.
In addition to his tariff plans, the White House floated the idea of an expedited permitting process for companies and individuals planning to invest at least $1 billion in the U.S. economy.
