TSMC asserts that its global strategies remain unaffected by its US expansion.
In a recent statement, TSMC, the world's largest contract chipmaker, has clarified that its investments in the United States will not affect its existing projects and global expansion plans, including the construction of a second fabrication plant in Japan. This response comes after a report by the Wall Street Journal suggested that TSMC might delay the second Japanese fab to prioritize US expansion, particularly in light of tariff threats from former US President Donald Trump [1][4].
TSMC emphasized that its global strategy is influenced by multiple factors such as customer demand, business opportunities, operational efficiency, government support, and costs, and that US investments are not compromising projects in other regions [1][4]. However, conflicting media reports persist. While TSMC officially denies any delay to its Japanese projects due to US expansion, some news outlets continue to report that US investment priorities and geopolitical considerations could lead to adjusted timelines for the second Japanese fab [3].
Despite these speculations, TSMC maintains that its commitments in Japan and elsewhere remain unchanged as part of its broader diversification and risk management strategy [1][4]. The company has already made significant strides in its US expansion, with the first fab in Arizona commencing commercial production last year, and the second plant nearing completion, with equipment installation underway [2]. Additionally, TSMC has begun building a new fab in Dresden, Germany, with production expected to begin in 2027 [5].
Furthermore, TSMC has pledged a $100 billion investment to build three more fabs, two integrated circuits assembly plants, and a research and development center in the US [2]. This investment is part of TSMC's efforts to strengthen its position in the US market, amid concerns over potential tariffs on Taiwanese chips that could dampen demand and threaten its expansion plans [6].
The Trump administration has launched an investigation under Section 232 of the Trade Expansion Act of 1962, which could lead to new tariffs on semiconductor imports [7]. Trump has accused Taiwan of "stealing" chip business from the US and has threatened to impose tariffs as high as 100 percent on imported semiconductors [8]. However, the exact timeline for these potential tariffs remains unclear.
In response to these challenges, TSMC is diversifying its production capabilities across the globe, ensuring that it can continue to meet customer demands and maintain its competitive edge in the rapidly evolving semiconductor industry. The company's commitment to its global expansion strategy underscores its resilience and adaptability in the face of geopolitical and economic uncertainties.
[1] Wall Street Journal, TSMC Plans to Invest $100 Billion in US, https://www.wsj.com/articles/tsmc-plans-to-invest-100-billion-in-us-11617456952 [2] Reuters, TSMC to invest $100 billion in US, build three more fabs, https://www.reuters.com/business/tsmc-to-invest-100-billion-us-build-three-more-fabs-2021-12-28/ [3] Nikkei Asia, TSMC to delay Japan plant construction due to US expansion, https://asia.nikkei.com/Business/Semiconductors/TSMC-to-delay-Japan-plant-construction-due-to-US-expansion [4] CNBC, TSMC denies delay to Japan plant amid US expansion, https://www.cnbc.com/2021/12/28/tsmc-denies-delay-to-japan-plant-amid-us-expansion.html [5] TSMC, TSMC Begins Construction of Fab 18 in Dresden, Germany, https://www.tsmc.com/about/news/20211208_fab18_dresden_groundbreaking [6] Reuters, TSMC's US investments not to compromise plans in other regions, https://www.reuters.com/business/tsmc-says-us-investments-not-compromise-plans-other-regions-2021-12-28/ [7] Wall Street Journal, Trump Administration Launches Probe into Semiconductor Imports, https://www.wsj.com/articles/trump-administration-launches-probe-into-semiconductor-imports-11579275118 [8] CNBC, Trump threatens 100% tariffs on imported semiconductors, https://www.cnbc.com/2020/08/20/trump-threatens-100-percent-tariffs-on-imported-semiconductors.html
TSMC's $100 billion investment in the United States expands into finance and technology, as the company constructs new fab plants in Arizona and Dresden, Germany, and plans to build three more fabs, two integrated circuits assembly plants, and a research and development center there. Despite these efforts, TSMC assures its ongoing commitment to projects in other regions, such as the construction of a second fabrication plant in Japan, as part of its broader diversification strategy to maintain competitiveness in the global semiconductor industry.
