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TSMC’s Massive $300B Investment: What It Means for the U.S.

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August 6, 2025
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TSMC Won’t Discount 2nm Chips: Cost to Skyrocket 50%!
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During his discussion on trade negotiations with Europe and Asian countries, Trump highlighted that South Korea and Germany are opening their markets to U.S. products. He also mentioned impending new tariffs on sectors like pharmaceuticals and semiconductors, noting that Switzerland had profited greatly from this industry. Trump then shifted focus to semiconductors, stating, “We are going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States.”

While TSMC is investing billions of dollars in U.S. chip production, much of the world’s leading-edge semiconductor fabrication remains concentrated in Taiwan and South Korea due to Intel’s struggles with high-end manufacturing.

Trump underscored that these investments will be made in the U.S., stating, “And by the way, they’re being made in the United States. We have the biggest in the world, as you know, from Taiwan is coming over and spending 300 billion dollars in Arizona, building the biggest plant in the world for chips and semiconductors.”

TSMC had previously expanded its initial $65 billion investment in the U.S. by another $100 billion, adding three new fabrication facilities to the original plan of three. The company anticipates an additional $200 billion in economic benefits over the next decade from this investment.

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In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

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Considering Trump’s comments about potential semiconductor-specific tariffs, it seems he might be hinting at generating extra revenue through these measures.

📚 Reading Comprehension Quiz

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According to Trump's discussion, which country is investing billions of dollars in U.S. chip production and planning to build the biggest plant in the world for chips and semiconductors?

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