It is the latest effort by Trump to persuade companies to make big investments in the U.S.

TSMC is the world’s largest contract chip-maker.

WASHINGTON—Taiwan Semiconductor Manufacturing Co. intends to invest $100 billion in chip manufacturing plants in the U.S. over the next four years under a plan expected to be announced later Monday by President Trump, according to people familiar with the matter.

The investment would be used to build out cutting-edge chip-making facilities. Such an expansion would advance a long-pursued U.S. goal to regrow the domestic semiconductor industry after manufacturing fled largely to Asian countries in recent decades. 

TSMC, the world’s largest contract chip-maker, set down roots in Arizona in 2020, when it said it would build a chip factory there for $12 billion. Its ambitions for the site have expanded rapidly since, with two more factories on the same site and a total investment of $65 billion. The company’s first factory began mass production late last year. 

TSMC’s announcement comes after years of deliberation regarding the future of semiconductor manufacturing in the U.S. and the global tech sector. The company currently builds its most advanced chip-making facilities only on its home soil Taiwan. The chips it produces are critical for powering everything from the latest artificial-intelligence systems to smartphones. 

Since the Biden administration, the U.S. has expressed concerns about TSMC’s near-monopoly on advanced chip manufacturing and has been urging the company to relocate more of its cutting-edge production, including advanced chip packaging facilities, to the U.S. Advanced chip packaging is particularly critical for AI related chips, as it enhances performance by integrating multiple semiconductor components, reducing size, improving power efficiency, and ensuring faster data transfer—key factors for AI applications.