Taiwan semiconductor firm TSMC, the world’s largest chipmaker, has vowed to add another $100 billion to its existing $65 billion plan to expand its U.S. manufacturing base. The total allocation — $165 billion over the next four years — sees TSMC further building out its advanced semiconductor fabrication complex in Phoenix, Arizona, which has been producing at volume since late 2024. The expansion plays a key role in strengthening the U.S. computer ecosystem by increasing U.S. production of advanced semiconductors, TSMC says, adding that it will “complete the domestic AI supply chain” with advanced packaging investments.

TSMC has earmarked the funds for Arizona, where it already has three plants and will add three more, for a total of six. In addition to the new chip plants, it will construct two chip-packaging plants there, also adding a research and development center, TSMC CEO C.C. Wei said during a White House appearance with President Trump on Monday.

With U.S. concern rising over China’s ambition to claim Taiwan, Washington has since the first Trump administration been lobbying TSMC to make chips here as a matter of national security. “The Biden administration advanced those efforts by passing the CHIPS Act, a bipartisan bill that provided $39 billion in federal funding” to build or expand factories here, reports The New York Times.

While TSMC had previously limited its most advanced chipmaking to its native Taiwan, The Wall Street Journal emphasizes that locating some of its advanced chip packaging in the U.S. is a significant move, as that aspect of fabrication “is particularly critical for AI-related chips, enhancing performance by integrating multiple semiconductor components, reducing size, improving power efficiency, and ensuring faster data transfer — key factors for AI applications.”

As a result of the investment, “TSMC expects to create hundreds of billions of dollars in semiconductor value for AI and other cutting-edge applications,” the company said in an announcement, emphasizing that the move “underscores TSMC’s dedication to supporting its customers, including America’s leading AI and technology innovation companies such as Apple, Nvidia, AMD, Broadcom, and Qualcomm.”

In his joint appearance with Wei, Trump drove home the point that TSMC would not have to pay tariffs on chips manufactured in the U.S. for use here.

TechCrunch notes that Trump’s tariff strategy for returning chip manufacturing to the U.S. has been coupled with threats to end Biden’s signature CHIPS Act, “which he’s criticized as inadequate,” but experts have warned that approach “could slow — or potentially even harm — the U.S.’ AI progress.”