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The Taiwan Semiconductor Manufacturing Company this week announced a new $100 billion investment in the United States. The investment amplifies the presence in Arizona of a company that has changed the state鈥檚 advanced manufacturing landscape and will solidify Arizona鈥檚 position as a semiconductor leader.

The new investment will expand TSMC in Arizona, creating two chip manufacturing plants and a packaging operation. Three plants are already in development in Arizona. 

The Arizona prescription for job growth

The $100 billion semiconductor investment marks a transformative milestone for the state鈥檚 economy. This influx of capital will generate thousands of high-paying jobs, create new opportunities for local businesses, sending a message that Arizona is open for business and underscoring the benefits of states adopting business-friendly policies鈥攍ike lower taxes, streamlined regulations, and legal and labor environments that encourage job growth.

Arizona has become a semiconductor hub of the U.S. Semiconductor manufacturing on American soil is not simply about job creation鈥攊t鈥檚 a critical step in reducing reliance on foreign supply chains for the technology that powers everything from smartphones to national defense systems.

National security implications

TSMC鈥檚 decision to expand in Arizona represents a pivotal step toward strengthening the country鈥檚 technological self-sufficiency. The facility will produce some of the most advanced 2-nanometer semiconductors, placing Arizona at the forefront of next-generation innovation. Advanced manufacturing, AI, and clean energy technologies are all anchored by semiconductor production. This success is the result of strategic leadership, forward-thinking policies, and a commitment to keeping America competitive on the global stage.

Warning signs

Investment in the U.S. semiconductor sector has been partially fueled by the CHIPS and Science Act, legislation passed during the previous administration with bipartisan support that contains various tools, including $39 billion in government-sponsored grants, to encourage domestic chip manufacturing.

In his joint address to Congress on Tuesday night, however, President Donald Trump called the legislation 鈥渁 horrible, horrible thing.鈥� 

TSMC has received more than $1 billion of CHIPS Act funding as part of a total package of more than $6 billion. 

鈥淵ou should get rid of the CHIPS Act and whatever鈥檚 left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to,鈥� the president said.