Trump Announces $1.5 Billion Pentagon Investment To Boost North Carolina Semiconductor Production

The Pentagon will invest $1.5 billion into expanding semiconductor production in North Carolina, President Trump announced Tuesday at a midterm rally in Greenville.

Trump framed the investment as a central part of his administration’s broader push to reshore critical manufacturing industries back to American soil.

“The Department of War will be investing $1.5 billion dollars to produce cutting-edge semiconductor chips right here in North Carolina,” Trump told the crowd gathered in Greenville.

The president also unveiled plans for a major new manufacturing facility in North Carolina by Sibelco, bringing Commerce Secretary Howard Lutnick onstage to deliver the announcement directly to supporters.

Lutnick offered his own framing of the administration’s semiconductor strategy, explaining the urgency of reducing American dependence on foreign chip production.

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

While Lutnick provided few additional details about the Sibelco facility, he confirmed it would focus on quartz manufacturing, describing it as foundational to the semiconductor supply chain.

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

Trump argued that American companies are investing in domestic manufacturing “at levels never seen before,” crediting tariffs and his administration’s broader economic agenda for the trend.

The president said Lutnick had personally worked with companies that “want to move back in because of the tariffs and because of us,” signaling confidence that trade pressure is delivering measurable results.

Trump also highlighted a series of recent manufacturing commitments to North Carolina, pointing to 15,000 jobs and billions in investments from companies including Johnson & Johnson, JetZero, Merck, and Biogen.

The Greenville rally served a dual political purpose, with Trump actively campaigning for Republican candidates ahead of the November 3 congressional elections.

Trump warned the crowd that Democratic control of Congress could jeopardize his administration’s economic and national security priorities, including ongoing efforts to rebuild domestic semiconductor and pharmaceutical capacity.

The administration has increasingly pointed to semiconductors, pharmaceuticals, and aerospace as strategically vital industries requiring domestic production to reduce reliance on vulnerable foreign supply chains.