The “largest foreign direct investment” in American history just got bigger on Thursday, as Taiwan Semiconductor Manufacturing Company (TSMC) expands its efforts primarily focused in Arizona.
The TSMC investment total is now up to $265 billion and will pave the way for their operations nationwide, as the U.S. seeks to onshore chip production as tensions continue to be high with China. Taiwan plays a major role in global semiconductor production, as chips are essential for everyday technology products.
🚨INCREDIBLE NEWS! 🚨
— Mayor Kate Gallego (@MayorGallego) July 16, 2026
TSMC will invest an additional $100 billion right here in Phoenix, bringing its total investment to $265 billion.
It’s the largest deal in US history and cements our city as the heart of America’s technology manufacturing economy.
“This is to support the strong multi-year demand from our leading U.S. customers, and we believe this investment will further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain, and support significant job creation in the United States,” Dr. C.C. Wei, TSMC Chairman and CEO, said in a statement on Thursday touting the Trump administration’s “strong collaboration and support.”
“We are very excited about the tremendous opportunities that lie ahead of us,” Wei added.
The increased investment was welcomed news to Commerce Secretary Howard Lutnick, who said in a statement that “President Trump’s leadership is driving companies to invest in American manufacturing.”
🇺🇸NEW🇺🇸
— Office of Congressman Abe Hamadeh (@RepAbeHamadeh) July 16, 2026
TSMC just announced a historic investment in Arizona’s Eighth Congressional District to expand semiconductor manufacturing — a massive win for President Trump’s America First agenda and America’s lead in AI.
Congressman Hamadeh breaks it down in this video⤵️ pic.twitter.com/4chBrooBtu
“TSMC’s announcement of an additional $100 billion investment following our historic deal on trade and investment with Taiwan will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America,” Lutnick added.
The move garnered bipartisan excitement, as Phoenix Mayor Kate Gallego, a Democrat, posted that it "cements [the] city as the heart of America’s technology manufacturing economy." Meanwhile, Rep. Abe Hamadeh (R-AZ), posted that it's "a massive win for President Trump’s America First agenda and America’s lead in AI."
Earlier this year, TSMC poured in another $100 million into their domestic efforts, with Wei stating at the time that “semiconductor technology is the foundation for new capabilities and applications” with the acceleration of AI technology.
There was an initial $65 billion put forward in 2020, which was considered a major economic boon for the Grand Canyon State.