Here Is Why TSMC Could Be Investing More In the US?

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 10 Hottest Stocks to Buy in 2026.

On January 23, Reuters reported that the Taiwanese President expects increased semiconductor investment in Arizona. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is investing the most in the region, almost around $165 billion to build factories.

President Lai Ching-te said that Taiwan looks forward to more semiconductor investment in Arizona to strengthen ties with the US. In a meeting with the Democratic Senator Ruben Gallego, the President said Taiwan Semiconductor Manufacturing Company’s investment in Arizona is a major product of the partnership between the industries of the two countries. Lai further said:

We look forward to even more semiconductor manufacturing, research, and development facilities springing up in the greater Phoenix area. This will continue to ‍strengthen Taiwan-U.S. relations.

TSMC remains at the center of this major trade partnership between Taiwan and the US. This development means that the semiconductor supplier will continue to invest more in the region and enhance its presence in the US. As announced earlier, Taiwanese tech companies plan to invest approximately $250 billion in the US.

Over the period of one-year as of January 30, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares have returned over 63%. Analysts remain bullish on TSM following the US-Taiwan trade deal, with 98% out of 49 analysts rating the stock as a Buy. TSM has a median price target of $410, implying an upside of over 23%.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest supplier of semiconductor chips to some of the world’s largest AI companies. The company manufactures, packages, and sells integrated circuits and other semiconductor devices globally.

While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.