TSMC’s newly announced US investment plan, unveiled on March 4, 2025, differs from the original by adding $100 billion, cutting one advanced-node fab, and including an extra advanced packaging plant and R&D center. This represents a win-win negotiation. The US government clearly knew what it wanted, while TSMC balanced government demands with commercial interests to maximize shareholder value. Though the $100 billion investment seems massive, the lack of details provides the flexibility for spending based on future conditions, softening the impact on profitability. Its biggest challenges remain market demand and leadership in advanced-node technologies. The US government’s push for another advanced packaging plant seeks to increase the share of AI chips made entirely in the US, underscoring AI’s role in national security and commerce. The new R&D center will strengthen US semiconductor research capabilities. The Trump administration has demonstrated to the American people its superior execution efficiency in semiconductor localization compared to the previous administration while strengthening negotiating power with China. TSMC’s new investment round significantly reduces geopolitical, tariff, and antitrust risks, maximizing shareholder value.

Full in-depth analysis : TSMC’s US deal is a win-win; dropping one advanced node fab protects TSMC’s interests, while an advanced packaging plant and R&D center helps the US’ chip push.