Chip giant TSMC pledges another $100bn to expand US production

The announcement came as the firm announced a 77% jump in second-quarter net profits. Profit from April to June jumped to $22bn, from $12. 4bn in the same three months a year earlier. Memory chip makers have seen demand boom in recent years as their products power AI data centres and smart devices.

Strong demand for TSMC's chips has helped to make it Asia's most valuable company. Its share price has jumped by more than 55% this year to give it a stock market valuation of around $2 trillion.

Wei did not give a timeline of when the new plants were likely to be built, saying only that it would depend on the "market situation". The new plants would add to the eight already being built or planned.

Welcoming the plans, Commerce Secretary Howard Lutnick said: "President Trump's leadership is driving companies to invest in American manufacturing.

"TSMC's announcement of an additional $100 billion investment following our historic deal on trade and investment with Taiwan will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America."

Additional reporting by Osmond Chia World's largest chipmaker does not rule out price rises as costs increase