President Donald Trump announced Monday that TSMC (TSM) — Taiwan Semiconductor Manufacturing Company — will invest at least $100 billion in its US manufacturing capabilities "over the next short period of time," bringing the Taiwanese company's total investment in the US to $165 billion.

Joined by TSMC CEO C.C. Wei at the White House, Trump said TSMC's investment will build five new manufacturing facilities in Arizona.

"The most powerful AI chips in the world will be made right here in America," Trump said.

Various media outlets had reported on the investment ahead of its official announcement

TSMC, which manufactures the most advanced AI chips for Big Tech firms including Apple (AAPL) and Nvidia (NVDA), had already committed to investing over $65 billion to build three US manufacturing facilities, or "fabs," in Arizona since 2020. The Taiwanese company's first US fab is fully operational, the second is slated for operation beginning in 2028, and the third has not yet begun construction. 

The company's US expansion is seen by analysts and politicians as a crucial to strengthening the United States' domestic manufacturing footprint as US-China tensions rise and the government looks to reclaim technological dominance in the space.

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TSMC announced plans to build its first of its US chip factories in Arizona in 2020. TSMC committed to building a second fab in 2022 and a third site in 2024 after it was awarded $6.6 billion in federal grants as part of the US Chips and Science Act.

US-listed shares of TSMC were down more than 4% Monday afternoon.

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.

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