Taiwan's TSMC has announced plans to invest $100 billion in building five new factories in the United States. The announcement was made by the company's CEO S.S. Wei with President Donald Trump at the White House, Reuters reports.
TSMC, the world's largest contract chipmaker and supplier to U.S. tech giants, plans to build three chip factories, two packaging plants and a large research center. The investment is aimed at increasing production in the United States to reduce the country's dependence on Asian semiconductors.
Trump has stressed the importance of local chip production, calling it a national security issue. TSMC did not specify a timeline for the project, but said the construction would create 40,000 jobs over the next four years.
The company's shares on the Taiwan Stock Exchange fell after the announcement, partly due to high manufacturing costs in the U.S. Higher operating costs are a key concern for TSMC.
The company could also play a major role in saving Intel. The Trump administration is considering bringing TSMC into a joint venture with Intel, according to sources.
For Trump, the deal is a campaign achievement that demonstrates support for American industry. Other major companies, including Apple, SoftBank and Emirati billionaire Hussein Sajwani, have also announced major investments in the United States.
TSMC said it is committed to driving innovation and strengthening the semiconductor industry together with its partners.