Politics
Trump Tariffs Steal Huge Employer From China
President Donald Trump’s aggressive tariff strategy against China has delivered a high-profile manufacturing victory to the United States.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, announced it will expand its U.S. investment by another $100 billion—bringing the total to $165 billion. The expansion marks the largest foreign direct investment in American history and signals a decisive shift away from Chinese reliance in the tech supply chain.
The plan includes three additional semiconductor fabrication plants, two advanced packaging facilities, and a major R&D center, all based in Phoenix, Arizona. Once completed, the full site will support tens of thousands of high-skilled jobs and provide a critical backbone for U.S. AI development.
“Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality,” said TSMC Chairman and CEO Dr. C.C. Wei. “With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our U.S. semiconductor manufacturing investment by an additional $100 billion.”
The announcement comes months after the Trump administration’s tariff war escalated to unprecedented levels. In a phased rollout that began February 1, Trump imposed tariffs that ultimately reached 145% on all Chinese imports. While the measures have drawn sharp criticism from global economists and some U.S. retailers, the TSMC announcement suggests the pressure campaign is paying dividends by reshaping the global manufacturing map.
Tainan, Taiwan- November 15, 2023: Taiwan Semiconductor Manufacturing Company (TSMC) plant in Tainan Science Park, Taiwan, TSMC is the world’s largest dedicated independent semiconductor foundry.
China, for its part, retaliated with tariffs of up to 125% on American goods and restricted exports of rare earth materials. But despite the tit-for-tat measures, analysts say the U.S. has scored a strategic win by pulling a crucial employer—and technological linchpin—out of China’s orbit.
TSMC’s Arizona site, already in production as of late 2024, currently employs over 3,000 workers and spans more than 1,100 acres. The company says the new projects will support over 40,000 construction jobs and generate more than $200 billion in indirect economic output in the U.S. over the next decade. Major U.S. tech firms like Apple, NVIDIA, AMD, Broadcom, and Qualcomm are among the expected beneficiaries of the expanded domestic chip supply.
While the aggressive tariffs have caused short-term pain—contributing to a 0.3% GDP contraction in Q1 2025 and supply chain disruptions that pushed prices up at retailers like Walmart and Target—the administration maintains that the long-term strategy is about securing American independence in key industries.
Beyond its growing Phoenix footprint, TSMC also maintains a fabrication plant in Camas, Washington, as well as design service centers in Austin, Texas, and San Jose, California.
TSMC is the world’s largest and most advanced semiconductor foundry. Unlike companies that both design and manufacture chips (like Intel), TSMC focuses solely on manufacturing, producing semiconductors that other companies design. This business model is known as a “pure-play foundry.”
TSMC plays a critical role in the global tech supply chain, producing chips that power smartphones, high-performance computing, automotive systems, AI, and more. Its leadership in advanced nodes—such as 5nm and 3nm chip fabrication—gives it a technological edge over most competitors.
