Washington DC - US President Donald Trump said Monday that the chip-making giant TSMC will invest "at least" $100 billion in the US to build "state of the art" chip manufacturing facilities.

Taiwan Semiconductor Manufacturing Co's new investment will come on top of their existing commitments of around $65 billion, and will go into "building five cutting edge fabrication facilities," Trump said during a White House event flanked by TSMC's chief executive, C.C. Wei.

Trump added that a Chinese invasion of Taiwan would be "catastrophic" in the wake of this major investment agreement.

"That would be a catastrophic event, obviously," Trump said at an announcement of the investment, which he said "will at least give us a position where we have, in this very, very important business, we would have a very big part of it in the United States."

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TSMC has long faced demands to move more of its production away from Taiwan, amid fears that supplies of the critical technology could be disrupted in any conflict with Beijing.

The company, during former president Joe Biden's administration, pledged to invest more than $65 billion in three factories in Arizona, one of which began production in late 2024.

Trump recently ratcheted up the pressure on TSMC and other chip manufacturers by publicly mulling the introduction of 25% tariffs on all semiconductor chips that are being made outside the US.

Monday's announcement brings the total amount committed by the company to around $165 billion, C.C. Wei said Monday.