TSMC’s $100B Pledge Reportedly Fails to Convince Investors, Analysts – Retail Remains Bearish

According to a report by the Financial Times, some industry insiders speculate that the U.S. government may eventually pressure TSMC to support struggling domestic manufacturers like Intel.

NYSE-listed shares of Taiwan Semiconductor Manufacturing Co. (TSMC) (TSM) dipped nearly 1% in Wednesday’s pre-market trading after a Financial Times report suggested the company’s recently announced $100 billion U.S. investment plan reflects an “intention” rather than a “promise.”

The report highlighted that while the pledge has temporarily eased political pressure, TSMC has yet to outline specifics on how and when the investment will be deployed, leaving investors uneasy.

It noted that TSMC’s latest pledge is significantly different from past commitments. When TSMC first pledged to build semiconductor fabrication plants (fabs) in Arizona during Trump’s first term, it provided detailed construction schedules.

The same applied when it expanded its U.S. investment to $40 billion in 2022 and then $65 billion in April 2024.

This time, the company has merely stated that it will add three new fabs to the three already announced, along with two facilities for advanced packaging. No precise timeline or breakdown of the $100 billion expenditure has been given.

The report also pointed out that despite the scale of the investment, TSMC’s U.S. operations will remain a fraction of its global business.

Analysts estimate that by the early 2030s, the Arizona fabs will generate no more than one-third of the company’s total revenue.