Chip giant TSMC pledges another $100bn to expand US production
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- TSMC pledged an additional $100bn (£74bn) for Arizona production, which the Commerce Department says will create tens of thousands of American jobs.
- CEO CC Wei said the increase will likely see four new Arizona plants added to eight already being built or planned, though he declined to give a timeline, citing only the "market situation."
- The announcement pushed TSMC's total US commitment to $265bn and came alongside a 77% jump in Q2 net profit to $22bn, up from $12.4bn a year earlier.
- TSMC's shares have surged more than 55% in 2025 to roughly $2tn in market value, making it Asia's most valuable company as AI-driven demand boosted orders for advanced chips used by Nvidia and Apple.
- Commerce Secretary Howard Lutnick credited President Trump's leadership and tied the announcement to a January US-Taiwan trade deal that cut Taiwan tariffs to 15% in exchange for hundreds of billions in investment.
Why it matters: TSMC's $265bn US commitment—announced alongside a 77% profit surge to $22bn—shows the world's leading advanced-chip maker formalizing a multi-year pivot to American production as AI demand rewires its earnings. The Commerce Department frames it as a Trump-policy win, yet Trump has previously credited his own tariff threats on Taiwan—not goodwill—for earlier TSMC expansions, leaving the actual policy lever ambiguous.
