Taiwan Semiconductor Could Pour $200 Billion Into US: Lutnick

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is accelerating its global expansion as demand for its advanced chips continues to surge.

U.S. Commerce Secretary Howard Lutnick said Thursday that he believes Taiwan Semiconductor could lift its U.S. investment to more than $200 billion and generate 30,000 jobs.

Speaking on CNBC, he sharply criticized the CHIPS Act, arguing that the Biden administration gave Intel Corp. (NASDAQ:INTC) an overly generous $11 billion subsidy and that the Trump administration has since converted that support into an equity stake.

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Lutnick also objected to the $6 billion awarded to Taiwan Semiconductor for its original $60 billion plan, saying the company has since increased its commitment to roughly $160 billion and could exceed $200 billion, Focus Taiwan reported on Friday.

Company Response And Official Comment

Benzinga reached out to Taiwan Semiconductor investor relations and press teams for their take on the Focus Taiwan report. The press team declined to comment.

The $1.2 trillion contract chipmaker gained over 54% in stock value year-to-date as a key Nvidia Corp. (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL) supplier, as the AI frenzy fuels demand for its AI chips.

The chipmaker remains engaged in expanding its geographical diversification in the U.S. as countries boost their semiconductor position to reduce reliance on China.

Taiwan Semiconductor initially pledged $65 billion for three Arizona fabs, with one now in production and two still being built.

It later announced another $100 billion for additional fabs, packaging plants, and an R&D center, following the Trump administration’s tariff threats.

Japan Expansion And Production Shifts

Taiwan Semiconductor is considering shifting its second Japan plant to produce more advanced 4-nanometer chips, according to Nikkei Asia.

The Kumamoto facility, originally planned for 6-nm and 7-nm production, may require design changes that could delay its 2027 launch.

Taiwan Semiconductor has already halted construction, removed heavy machinery, and paused new equipment installation at its existing Kumamoto plant.

The company routinely adjusts projects to match market needs, as seen in Kaohsiung, where it upgraded plans to 2-nm technology.

Taiwan Semiconductor is now racing to expand advanced capacity, boosting its 2-nm program from seven to ten fabs across Tainan, Hsinchu, and Kaohsiung.

TSM Price Action: Taiwan Semiconductor shares were down 0.93% at $302.00 during premarket trading on Thursday. The stock is approaching its 52-week high of $313.98, according to Benzinga Pro data.

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