Trump says Pentagon will invest $1.5 billion into North Carolina chip production

President Trump on Tuesday announced a $1.5 billion dollar investment from the Pentagon to expand semiconductor production in North Carolina, as the administration pushes to reshore manufacturing to the U.S.

“The Department of War will be investing $1.5 billion dollars to produce cutting-edge semiconductor chips right here in North Carolina,” Trump said while speaking at a midterm rally in Greenville.

The president also announced the construction of a massive manufacturing plant in the Tar Heel State by Sibelco, bringing Commerce Secretary Howard Lutnick on stage to share the news with the crowd.

“So, the president had as one of his fundamental objectives was to bring semiconductor manufacturing home to America, right?” Lutnick said. “It’s all made in Taiwan, right? And that’s just too far away for America. So he’s bringing it home.”

Lutnick provided few details, but said the facility will focus on quartz manufacturing.

“It is basically the foundation of semiconductors, and they’re going to build it right here in North Carolina,” he said.

Trump said companies have been investing in U.S. manufacturing “at levels never seen before,” adding that Lutnick collaborated with companies that “want to move back in because of the tariffs and because of us.”

Trump has made similar announcements at previous midterm rally stops, including a $4.4 billion investment from Taiwan into the Alaska pipeline and a $200 billion investment from South Korea into U.S. energy infrastructure.