Taiwan Semiconductor Company (TSMC) is partnering with the United States to build five new factories, giving its stock as much as 40% upside. TSMC CEO C.C. Wei and US President Donald Trump shared the announcement this week, revealing the former’s $100B investment into building new chip facilities in the United States. TSMC said the expansion included plans for three new chip fabrication plants, two advanced packaging facilities and a major research and development centre.

The world’s largest contract chip maker’s latest $100 billion investment plan is aimed at meeting strong demand from U.S. customers, Wei said, speaking at a press conference alongside Taiwan President Lai Ching-Te at the presidential office on Thursday. He added that TSMC’s production lines are already fully booked for this year and the next two years. For the United States, Trump says that the investment is a big win for increasing national security. “We must be able to build the chips and semiconductors that we need right here,” Trump said. “It’s a matter of national security for us.”

TSMC stock is down 15% in the past month, but the latest investment announcement could help its stock rebound. According to CNN analysis, 93% of 46 analysts are calling the stock a buy. None of the analysts are suggesting to sell the stock. In terms of long-term projections, CNN states that TSMC will continue its growth from the past year over the next year, rising to a median price of $255.00. That would reflect an over 40% climb from current prices. Alternatively, TSMC also projects to reach a high of $265 over the next year and a low of $215, all gains from current share price.

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In the past year, TSMC stock is up 26%, but it has struggled in 2025 thus far. Furthermore, TSMC’s investment plan has raised concerns that it may be acting under pressure from President Trump. Indeed, the US president previously criticized Taiwan’s near-dominance in advanced chip manufacturing and threatened tariffs on chip imports. However, with chip technology becoming more crucial, the investment creates more competition in the US with partner Nvidia, which may only benefit further advancement.

TSMC did not give a timeframe for any of its new investments, apart from saying the effort would add 40,000 construction jobs over the next four years.