Trump claims that TSMC will invest $300B in Arizona
What's the story
US President Donald Trump has claimed that Taiwanese semiconductor giant TSMC will be investing $300 billion in Arizona. The announcement was made during an interview on CNBC's Squawk Box. However, the company itself has not confirmed any new investments beyond what was announced earlier this year, raising questions about the authenticity of Trump's figure.
Investment details
What did TSMC say?
TSMC's last official announcement, made earlier this year, detailed a multi-year investment plan of $165 billion. The plan includes the construction of six chip fabrication plants, two packaging facilities, and a research center in Arizona.
Tariff strategy
Analyst questions Trump's $300B figure
Renowned supply chain analyst Ming-Chi Kuo has questioned the authenticity of Trump's $300 billion figure. He wrote on X, "TSMC's officially announced investment is $165 billion, while Trump previously stated $200 billion. His further escalation to $300 billion seems to be laying the groundwork for upcoming semiconductor tariffs." Kuo also denied rumors of TSMC being pressured into a 49% stake in Intel or an extra investment in the US as part of Taiwan-US trade negotiations.
Tariff announcement
Trump hints at imminent semiconductor tariffs
During the same interview, Trump announced that tariffs on semiconductors and pharmaceutical imports would be announced "within the next week or so." He said there would be an initial small tariff on pharmaceuticals but it would increase significantly over time. The US Commerce Department has been investigating the semiconductor market since April, paving the way for potential tariffs that could raise chip costs for AI-heavy firms like Microsoft, OpenAI, Meta and Amazon.