Key TakeawaysRenowned Taiwanese chipmaker TSMC has promised to invest $100 billion in the US over the next 4 years.This money will be used for the construction of 3 manufacturing units and 2 packaging units in Arizona.The announcement of this investment coincides with Trumps proposed plan to impose higher tariffs on imported chips.Taiwanese chipmaker TSMC has pledged to invest at least $100 billion over the next 4 years in chip manufacturing plants in the US. This money will be used for the construction of three new manufacturing and two packaging facilities across Arizona.This was announced in a news conference by President Donald Trump on Monday, where he was joined by TSMC chairman and CEO C. C. Wei.We are going to produce many AI chipsto support AI progress Dr. C. C. WeiTSMCs Collaboration with the USThis isnt the first time TSMC is investing in the US. The company had previously invested $65 billion in creating US-based fabrication plants, bringing its total investment in the US to $165 billion.TSMC also received a $6.6 billion grant from the CHIPS Act during Bidens tenure. This money was used to construct 3 fabrication plants in Arizona, one of which is already functional and churning out 4-nanometer chips.Note: The CHIPS Act was introduced by Joe Biden to boost domestic research and manufacturing of semiconductors.TSMC has a friendly history with the US, but the timing of this new investment is interesting nonetheless. Previously, Trump had expressed concerns over TSMCs dominance in the chip manufacturing industry and urged the company to expand its manufacturing base to the US. This coincides with the presidents recent announcement that he might impose higher tariffs on imported chips.While some experts have criticized the tariffs move, I believe it could be one of the reasons why TSMC decided upon such a massive investment in the US. Were essentially seeing the exact same thing here as we did when Apple announced a massive $500 billion investment plan for the US.Taiwans Stance on This DealWhile this collaboration is a huge win for both the US and TSMC, Taiwanese citizens are not very happy about it. Theyre concerned that a deal like this could undermine the islands security.However, the Taiwanese government has stepped in and assured the people that its most advanced semiconductor technology will not be passed to the US. They also added that this deal will have to go through extreme scrutiny first, where the interests of all the parties, especially the citizens, will be evaluated.Its important to note that although the government offices were aware of the deal, TSMC hasnt yet applied for the approval, which is usually required for such massive foreign investment.TSMC is the biggest chip company in Taiwan, making it important for the small islands economy and security. A lot of people are worried that sharing this technology will weaken their defense. However, on the flip side, Taiwans defense minister is convinced that the US would protect them.Theres a lot of confusion regarding how this deal will pan out, but its important to note that the US hasnt explicitly promised any security in exchange for this deal.Add Techreport to Your Google News Feed Get the latest updates, trends, and insights delivered straight to your fingertips. Subscribe now! Subscribe now Amy Clark has extensive knowledge of the SaaS market. She started her journey managing and supporting the content at systeme.io before becoming a writer and then in-house managing editor for Techreport, where she manages the delivery and quality of the content, spanning reviews, comparisons, and buyer guides. When she's not advocating for animal rights, you'll find her lost in the world of video games. View all articles by Amy Clark Our editorial processThe Tech Reporteditorial policyis centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written byreal authors.