Is Taiwan Semi Stock a Buy, Sell, or Hold on Plans to Invest $100 Billion in the U.S.?

Taiwan Semiconductor Manufacturing Company Limited (TSM), the world’s largest contract chip maker, is deepening its commitment to U.S. semiconductor production with a $100 billion investment. This move builds on the company’s existing $65 billion effort in Phoenix, Arizona, bringing its total U.S. commitment to $165 billion. The expansion includes three new fabrication plants, two advanced packaging facilities, and a major R&D team center. 

A key driver behind this expansion is the U.S. government’s push to localize semiconductor production. President Donald Trump had long advocated for reducing reliance on foreign chipmakers, imposing heavy tariffs on imports to incentivize domestic production. The U.S. government has encouraged this shift through the 2022 Chips Act, offering significant subsidies - though Trump has more recently cast doubt on his support for the legislation.