The United States and Taiwan have reached a trade agreement under which Taiwanese companies will invest up to $250 billion to expand semiconductor manufacturing, energy projects and artificial intelligence development in the U.S.
U.S. Commerce Secretary Howard Lutnick said the deal includes $100 billion already committed by Taiwan Semiconductor Manufacturing Company (TSMC), with further investments expected in the coming years.
TSMC, the world’s largest contract chipmaker, has signalled plans to expand its manufacturing footprint in the U.S., although it has not disclosed fresh investment figures beyond the $165 billion it has already pledged.
As part of its expansion strategy, TSMC completed the purchase of a second parcel of land in Arizona in January 2026 to support the development of a large-scale chip manufacturing hub aimed at meeting growing AI-related demand.
In March 2025, the company announced plans to raise its total U.S. investment to $165 billion, covering three additional fabrication plants, two advanced packaging facilities and a research and development centre. Earlier, in April 2024, TSMC unveiled plans for a third fabrication plant in Arizona, pushing total investment beyond $65 billion.
TSMC’s initial U.S. investment dates back to May 2020, when it announced a $12 billion plan to build its first advanced semiconductor fabrication facility in Arizona. This was followed by the addition of a second plant in December 2022, increasing planned investment to $40 billion.
The first Arizona facility is already operational, with volume production beginning in the fourth quarter of 2024 using 4-nanometre technology. Construction of the second plant has been completed, with production using 3-nanometre technology expected to start in the second half of 2027. A third facility, which broke ground in April 2025, is expected to produce 2-nanometre and more advanced chips by the end of the decade.
TSMC is also seeking permits to build additional fabrication plants, advanced packaging facilities and an R&D centre in Arizona, though timelines have not yet been disclosed.
Major customers of TSMC’s Arizona operations include Apple, Nvidia, AMD and Qualcomm. Apple is the facility’s largest customer, while Nvidia began volume production of its Blackwell GPUs at the Arizona site in October 2025.