Apple chip supplier TSMC has announced a $100 billion increase to its U.S. chip investment, bringing its total commitment to $265 billion.
The increase was confirmed by the White House and the Department of Commerce alongside TSMC's second quarter earnings call. Commerce Secretary Howard Lutnick said the investment would "create tens of thousands of American jobs," while TSMC chairman and CEO C.C. Wei told CNBC the new fabrication plants would support "our leading U.S. customers," a group that reportedly includes Apple, alongside Nvidia and Broadcom.
Apple CEO Tim Cook called Apple "TSMC Arizona's first and largest customer" when the company's third Arizona fab broke ground last year, and the company's first Arizona plant already produced some of Apple's A16 chips.
TSMC has historically reserved its most advanced manufacturing processes for its home plants in Taiwan, meaning Arizona made chips have trailed several generations behind whatever Apple ships at any given time. TSMC has since committed to building its own advanced packaging facilities in the US as part of its broader investment plan, according to a regulatory filing.
The new $100 billion is expected to fund up to four more plants, though the exact shape of the plan remains unsettled. The Department of Commerce says the total will reach 12 U.S. facilities, while an official told Bloomberg the eventual mix could be 10 fabrication plants and two packaging facilities, focused on 2 nanometer chips, TSMC's most advanced process commercially available today.
That timing could hinge partly on how much U.S. capacity Apple itself ends up needing, since the company has been separately exploring Intel and Samsung as backup chipmakers to reduce its reliance on TSMC amid the ongoing global chip crunch. Apple is reported to have secured an exemption from a proposed 100% semiconductor tariff partly by pledging its own U.S. manufacturing investment and agreeing to buy chips from Intel.
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