TSMC Expands U.S. Investment Under Trade Deal, Boosts Semiconductor Sector
Taiwan Semiconductor Manufacturing Company (TSMC) is set to significantly expand its U.S. footprint with plans to build multiple new facilities in Arizona. The MOVE could elevate the total number of plants in the state to nearly a dozen, marking a strategic escalation in its global manufacturing capabilities.
The expansion is tied to a broader trade agreement between the U.S. and Taiwan, which includes over $300 billion in Taiwanese investment stateside. In exchange, the U.S. will reduce tariffs on Taiwanese goods, slashing the current 20% rate. TSMC has already committed $165 billion to U.S. projects, with three chip plants currently in the pipeline.
TSMC's stock ROSE 1.18% on Tuesday, propelling Taiwan's Taiex index to a record high of 30,707.22. The expansion poses a direct challenge to Intel's ambitions of dominating domestic chip production.
