Taiwanese chipmaker TSMC has announced plans to invest at least $100 billion in chip manufacturing plants in the United States over the next four years, marking a significant expansion of its network of semiconductor factories. The news was revealed by President Donald Trump during a press conference on Monday, with the investment set to fund the construction of five facilities in Arizona.

This latest investment brings TSMC's total investments in US chip manufacturing to around $165 billion, according to Trump. The company had previously pledged to invest $65 billion in US-based fabrication plants and has received up to $6.6 billion in grants from the CHIPS Act, a major Biden administration-era law aimed at boosting domestic semiconductor production.

The US has long expressed concerns about TSMC's near-monopoly on chip manufacturing and has urged the company to relocate more of its production to the US. The types of advanced chip packaging in which TSMC specializes are particularly critical for AI chips, which have seen a steep increase in demand corresponding with the AI boom.

President Trump has been vocal about his desire to return chip manufacturing to the US, threatening to impose tariffs on foreign chip production and criticizing the CHIPS Act as inadequate. However, experts have warned that Trump's approach could slow – or even harm – the US's AI progress. The latest investment from TSMC may be seen as a strategic move to delay or avoid tariffs, with Daniel Newman, CEO of the Futurum Group, suggesting that the investment could be tied to specific requirements or contingent on meeting certain conditions.

"As the US continues to push for increased domestic manufacturing and with tariffs on the horizon, a substantial commitment from TSMC could serve as a strategic gesture of goodwill," Newman told TechCrunch via email. The investment is likely to be seen as a win for the Trump administration, which has made boosting domestic manufacturing a key priority.

TSMC, the world's largest contract chip maker, already has several facilities in the US, including a factory in Arizona that began mass production late last year. However, the company currently reserves its most sophisticated facilities for its home country of Taiwan. The US considers TSMC's heavy Taiwanese presence a strategic risk due to growing threats from the mainland Chinese government.

President Trump and US Commerce Secretary Howard Lutnick have reportedly pressed TSMC to take over and manage Intel's chip plants in the US, which have been beset by logistical challenges. The latest investment may be seen as a step towards addressing these concerns and reducing the US's reliance on foreign chip production.

The announcement is the latest in a series of high-profile investments in US infrastructure projects, with OpenAI and SoftBank pledging to invest up to half a billion dollars in a domestic AI data center network in January, and Apple announcing plans to spend more than $500 billion to expand its US manufacturing footprint just last week. While the pledges have been light on details, they demonstrate a growing trend towards domestic investment in key technology sectors.

Experts have questioned the feasibility of these investments, but the latest move by TSMC is likely to be seen as a significant step towards boosting domestic chip production and reducing the US's reliance on foreign manufacturers. As the global technology landscape continues to evolve, the implications of this investment will be closely watched by industry observers and policymakers alike.