Taiwan Semiconductor Manufacturing Company (TSM) is rapidly expanding its global footprint, and U.S. Commerce Secretary Howard Lutnick thinks the chipmaker's American investment could eventually top $200 billion. That's a staggering number, even by semiconductor industry standards.
Speaking on CNBC Thursday, Lutnick predicted that Taiwan Semiconductor could lift its U.S. investment beyond $200 billion while creating around 30,000 jobs. The comments came as he sharply criticized the CHIPS Act, arguing that the Biden administration handed Intel Corp. (INTC) an overly generous $11 billion subsidy. According to Lutnick, the Trump administration has since converted that support into an equity stake.
He also took issue with the $6 billion awarded to Taiwan Semiconductor for its original $60 billion plan. The company has already bumped that commitment to roughly $160 billion, and Lutnick believes it could climb past $200 billion, Focus Taiwan reported Friday. MarketDash reached out to Taiwan Semiconductor for comment on the report, but the company's press team declined to respond.
Riding The AI Wave
The $1.2 trillion contract chipmaker has gained over 54% in stock value year-to-date, largely thanks to its position as a key supplier to Nvidia Corp. (NVDA) and Apple Inc. (AAPL). The AI frenzy continues to fuel demand for its advanced chips, and Taiwan Semiconductor is expanding aggressively to meet that demand.
The company is pushing hard on geographical diversification, particularly in the U.S., as countries worldwide look to boost their semiconductor capabilities and reduce reliance on China. Taiwan Semiconductor initially pledged $65 billion for three Arizona fabrication plants, with one already in production and two still under construction.
Then came another $100 billion commitment for additional fabs, packaging plants, and a research and development center. That announcement followed tariff threats from the Trump administration, which likely concentrated minds in Taipei about the need for a more substantial American presence.
Japan Gets An Upgrade
Meanwhile, Taiwan Semiconductor is rethinking its Japan expansion. According to Nikkei Asia, the company is considering shifting its second Japan plant to produce more advanced 4-nanometer chips instead of the originally planned 6-nanometer and 7-nanometer technology.
The Kumamoto facility may require design changes that could push back its 2027 launch date. Taiwan Semiconductor has already halted construction at the site, removed heavy machinery, and paused new equipment installation at its existing Kumamoto plant.
These mid-project pivots aren't unusual for the chipmaker. The company routinely adjusts projects to match market needs. In Kaohsiung, for example, it upgraded plans to 2-nanometer technology to stay ahead of the curve.
Taiwan Semiconductor is now racing to expand its advanced chip capacity, boosting its 2-nanometer program from seven to ten fabs across Tainan, Hsinchu, and Kaohsiung. With AI demand showing no signs of slowing down, the company seems determined to build out capacity wherever the market demands it.
TSM Price Action: Taiwan Semiconductor shares were down 0.93% at $302.00 during premarket trading on Thursday. The stock is approaching its 52-week high of $313.98, according to market data.
