Former President Donald Trump recently sat down with the leaders of Taiwan Semiconductor Manufacturing Company, TSMC, the world’s top chip maker, in a heightened bid to finance the U.S. semiconductor sector. During a closed-door session on March 3, 2025, President Trump urged TSMC to explore additional investments in a U.S. factory as they work to wean the U.S. from foreign-produced semiconductors.
Semiconductors, or chips, are essential components of nearly all modern technology, from smartphones to weaponry. But today, the U.S. produces only about 12% of the world’s chips, with production occurring predominantly in Asia. That dependence has concerned national security and supply chain vulnerabilities, especially after the global chip shortage during the COVID-19 pandemic.
During the meeting, Trump urged chip-making of the latest kind to be brought to the United States to create jobs and keep the country competitive in the technology industry. TSMC, which already operates a $12 billion factory in Arizona, is eyeing further investment in the United States. The new factories might focus on making even more advanced chips, which are crucial to the making of such new innovations as artificial intelligence and electric cars.
Discussions also referred to possible TSMC incentives in the form of tax holidays and government subsidies. The U.S. administration has been strongly favoring chip making at home via programs such as the CHIPS and Science Act, offering billions of dollars to fund semiconductor development and production.
TSMC’s move to expand in the U.S. is a victory for both parties. For the U.S., it translates into more high-tech employment and a better position in the global tech competition. For TSMC, it provides access to the American market and a means of diversifying its manufacturing base as geopolitical tensions between the U.S. and China increase.
There are still many hurdles that lie ahead. Building a chip factory is an expensive and time-consuming project requiring immense skilled labor and the latest technology. There is fear among some experts that relying upon foreign companies like TSMC, when domestic chipmakers never have to change their modus operandi, does little to ameliorate vulnerabilities over the long term in the supply chain.
Though the hurdles remain, the action between Trump and TSMC shows that the commitment to rebooting U.S. production of semiconductors deepens. These alliances may become the mainstay in ensuring that the U.S. remains a technology leader in the coming years, continuing with an increasing demand for semiconductors.
We share the vision that the talks between Trump and TSMC are indeed an effort to bring more chip-making to the U.S. And because both will be willing to cooperate, this marriage could just be the turning point in the race to assure America’s technology for years to come.
