Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) is investing billions of dollars to establish a factory in the United States in support of President Trump's strategy to produce AI chips domestically.

Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) is the world's largest producer of artificial intelligence chips. The company plans to invest an additional $100 billion in its US factories to increase its chip production in the US and support President Donald Trump's goal of increasing domestic manufacturing. CEO Wei Zhejia of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR revealed the company's vision for expanding its footprint in the US during a meeting with Trump at the White House on Monday. Trump stated, "This means the most powerful artificial intelligence chips in the world will be manufactured in the United States." Trump said, "Without semiconductors, there is no economy to power everything from artificial intelligence to cars to advanced manufacturing." Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR plans to invest $65 billion in the US, which will bring its total number of factories in the US to five: three for advanced chip manufacturing and two for advanced packaging. Wei Zhejia said, "We will produce many chips to support the progress of artificial intelligence and smartphones. We thank President Trump for his support." He added that these measures will create thousands of high-tech manufacturing jobs. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is a world leader in producing advanced semiconductors for artificial intelligence, and is a major chip manufacturing partner of NVIDIA Corporation (NVDA.US) and Apple Inc. (AAPL.US). Following the announcement, NVIDIA Corporation stated that it will rely on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's new factory to establish a flexible technology supply chain in the US. The company's American Depositary Receipts (ADRs) fell 4.2% on Monday, dragged down by a general decline in tech stocks as the market worried about impending tariffs on Canada, Mexico, and China. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's investment plan will support Trump's goal of leading the US in artificial intelligence, the latest major technology investment in the US since Trump took office. Companies like Apple Inc., OpenAI, and Meta Platforms Inc. have committed to investing over $1 trillion, although the scope of these commitments is unclear and may include previously planned expenses. As Trump considers imposing tariffs on a wide range of industries including semiconductors, lumber, automobiles, and pharmaceuticals to address what he perceives as global trade imbalances harming the US, his efforts to promote domestic manufacturing have faced challenges. This is especially crucial for technologies like artificial intelligence and semiconductors that are at the core of US-China competition. When asked about the role of his tariff threats in influencing companies' decisions to invest in the US, Trump said, "By doing this here, they have no tariffs." The president expressed a preference for using tariffs to stimulate US chip manufacturing rather than government subsidies, a method favored by former President Biden, who pushed through the CHIPS and Science Act to revitalize domestic industry. The act, signed in 2022, allocated $6.6 billion to Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to support three factories in Phoenix. However, with significant federal workforce cuts under the Trump administration, the future implementation of the CHIPS Act projects is in doubt. Sources revealed that the US government office responsible for the $52 billion subsidy plan is set to lose about two-fifths of its staff. Trump administration officials have also been in contact with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to discuss the possibility of acquiring a stake in Intel Corporation's factories. These negotiations are in early stages and aim to address concerns about Intel Corporation's deteriorating financial situation. Financial troubles have led Intel Corporation to lay off employees and limit its global expansion plans. During his first term, Trump's administration attracted Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to the US partly due to national security concerns. When Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR first announced its investment in an advanced factory in the US in 2020, Trump administration officials stated that the semiconductors produced by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR in Arizona would power everything from artificial intelligence to F-35 fighter jets. The company's first factory in Arizona has been a partThe factory is now operational, and its early production has already exceeded that of similar factories in the United States. AMD CEO Su Zifeng praised the efforts of the Trump administration to encourage domestic manufacturing on Monday, and stated that AMD has partnered with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR as the main customer of the factory.Su Zifeng expressed in a statement, "We look forward to starting production of our highest performance products later this year in the United States."