NVIDIA says TSMC's new fabs will be the 'foundational pillar' of tech supply chain in the USA

President Trump and TSMC just announced the largest single foreign direct investment in US history, with another $100 billion to expand TSMC's operations on US soil.

The ofifcial X account for NVIDIA posted: "TSMC's new fabs will be the foundational pillar of a new technology supply chain centered in the United States. NVIDIA will fully utilize TSMC's global manufacturing network to enhance our supply agility and resilience".

TSMC Chairman and CEO Dr. C.C. Wei, said: "Back in 2020, thanks to President Trump's vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality. AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications. With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our U.S. semiconductor manufacturing investment by an additional $100 billion, bringing our total planned investment to $165 billion".

• Read more: President Trump announces TSMC will be investing another $100 billion into US operations

The company already has $65 billion worth of investments into advanced semiconductor manufacturing operations at its fab in Phoenix, Arizona, with TSMC's total investment in teh US expected to reach $165 billion. This expansion includes plans for 3 new fabrication plants, two new advanced packaging plants, and a major R&D team center, with the company said "solidifying this project as the largest single foreign direct investment in US history".

TSMC expects to create hundreds of billions of dollars of semiconductor value for AI and other cutting-edge chips, with TSMC's expanded investment expected to create 40,000 construction jobs over the next 4 years, as well as creating tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D on US soil.

• Read more: TSMC mass production of A16 process in 2H 2026 in Taiwan, Arizona fab by 2028
• Read more: TSMC's 2nm capacity to hit 30K wafers monthly by end of 2025
• Read more: TSMC to begin 3rd Arizona fab construction in mid-2025, a year early
• Read more: TSMC to invest more in Arizona for Trump's 'manufacture in USA' policy

TSMC's Arizona fab currently employs more than 3,000 people on 1,100 acres of land in Arizona. The site has been in volume production since late 2024. This expansion will play a crucial role in strengthening the U.S. semiconductor ecosystem by increasing American production of advanced semiconductor technology. It will also complete the domestic AI supply chain with TSMC's first U.S. advanced packaging investments.

In the United States, in addition to its latest manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centers in Austin, Texas, and San Jose, California