Taiwanese chipmaker TSMC will invest another $100bn (£74bn) in Arizona as it expands its production in the US, a move the Commerce Department said will create tens of thousands of American jobs.

TSMC makes the most advanced chips designed by companies such as Nvidia and Apple, and the news is a boost for President Donald Trump's drive to bring more advanced manufacturing to the US.

It raises the company's total commitment to the US to $265bn, with chief executive CC Wei saying the increase will likely see four new plants built in Arizona.

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.

'High-paying' jobs

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.

"We believe this investment will help to further foster the development of the US semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States," Wei said.

President Trump wants to boost US production of semiconductor chips, which are found in machines ranging from cars to smartphones, and has been a priority for the US since shortages during the Covid-19 pandemic exposed supply chain risks.

He has previously attributed a decision by TSMC last year to expand its investments in the US to his threats of tariffs on Taiwan and on the global semiconductor business.

In January this year, the US said it had agreed to cut tariffs on goods from Taiwan to 15% in exchange for hundreds of billions of dollars in investment aimed at boosting domestic production of semiconductors.

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."