TSMC plans to invest $100 billion in the United States to build cutting-edge semiconductor manufacturing facilities over the next four years. Will U.S. manufacturing become the future trend?

According to The Wall Street Journal, TSMC (TSMC) plans to invest $100 billion in the United States in the next four years to build an advanced process chip manufacturing plant. The United States has always been wary of TSMC's monopoly in the advanced process market. Therefore, during the Biden era, TSMC received a subsidy of about $6.6 billion through the chip act, intending to continue setting up factories in the United States. At the beginning of Trump's presidency, he threatened to impose tariffs of up to 25% on imported chips. Now, with a $100 billion investment plan exposed, it is expected to bring more changes to the chip market as well.

The US government is concerned about TSMC's monopoly on advanced processes, adding geopolitical risks to Taiwan's factories.

As the world's largest contract chipmaker, TSMC rooted in Arizona, USA as early as 2020, announcing a $12 billion investment in chip plant construction. Subsequently, the plant quickly expanded, with two more factories added to the same site, bringing the total investment to $65 billion. The first factory began mass production at the end of last year.

Chips produced by TSMC are crucial for various devices from AI to smartphones. Since the Biden administration took office, it has been very concerned about TSMC's dominant position in advanced processes, especially as the production of advanced processes is concentrated in Taiwan, which also increases geopolitical risks.

From chip bill to investment of k billion, TSMC is gradually setting foot in the United States

The "Chip Act", passed by the United States in 2022, supports TSMC's expansion in the United States, providing billions of dollars in subsidies for domestic chip manufacturing. TSMC alone received up to $6.6 billion in subsidies.

According to the plan, TSMC will invest 1000 billion US dollars in the next four years, mainly for the construction of advanced process chip factories, which coincides with the long-term goal pursued by the United States. After a large number of manufacturing industries moved to Asian countries in the past few decades, it will revitalize the domestic semiconductor industry.

Is American manufacturing the main theme for the next four years? Musk questions the feasibility of the investment plan.

Trump has repeatedly called for chip manufacturing in the United States, although he believes that attracting manufacturing through tariffs is a better way and criticized the "Chip Act" during the campaign. In February, he said he was considering imposing a 25% or higher tariff on semiconductor imports. At that time, he said: "We must make chips in this country. Almost all chips are now produced in Taiwan, a few in Korea, but almost all are made in Taiwan. We hope these companies come to our country."

Counting the times since Trump took office, he has announced investment commitments to the United States with corporate executives at the White House. OpenAI's Sam Altman, Oracle of Oracle, and Softbank's Masayoshi Son have pledged to invest as much as 500 billion US dollars to build artificial intelligence infrastructure in the United States, but Elon Musk has expressed doubts about whether this plan can be realized. And last week, Apple also announced plans to invest over 500 billion US dollars in the next four years to expand its manufacturing layout in the United States.

Coincidentally, in the blockchain industry, American manufacturing seems to have become a new narrative ( despite being borderless ). Behind Trump's announcement to promote cryptocurrency through executive orders, ChainNews compiled a report on the American chain narrative. In addition to the mentioned BTC, ETH, SOL, ADA, XRP, attention may also be paid to currencies such as MOVE, ONDO, INJ, AVAX, EIGEN, IP, as well as the actions of venture institutions like Polychain, a16z, Pantera.

(Who is the next reserve of encrypted assets in the United States? An article taking stock of the best potential "American chains" in political and business relations)

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