Taiwan Semiconductor Manufacturing (TSMC) has announced plans to invest some $100 billion into US chip manufacturing.

US President Donald Trump called the pledge a “tremendous move by the most powerful company in the world.” It appears to be in addition to an existing $65bn investment in semiconductor fabs in Phoenix, Arizona.

TSMC is building three factories in Arizona, backed by CHIPS Act funding. Where the new fabs will be built was not disclosed.

The Taiwanese company is set to receive around $11.6bn in CHIPS Act funding - $6.6bn in grants and $5bn in loans - which could be at risk from Trump. The President has long criticized the Biden-era semiconductor initiative, while DOGE-led staffing cuts removed around two-thirds of CHIPS staffers working on research and development, and 57 percent of workers focused on incentives for semiconductor infrastructure.

"All you had to do is charge them tariffs," Trump said ahead of the election. He has threatened to enforce semiconductor tariffs in the coming weeks, ramping up to a 100 percent charge over the course of a year. Tariffs are paid by the importer and not the exporter.

"You know, Taiwan, they stole our chip business, okay?" Trump said on the Joe Rogan Podcast.

"They want us to protect, and they want protection. They don't pay us money for the protection, you know. The mob makes you pay money, right? But with these countries that we protect, I got hundreds of billions of dollars from NATO countries that were never paying us."

The White House is also believed to have suggested that TSMC take over Intel's manufacturing business.