TSMC committed to Arizona chip plant ahead of potential tariff impact

Date:
Wed, 30 Apr 2025 13:28:00 +0000

Description:
With its first plant in full swing and its second now scaling up production, TSMC starts work on its third US chip plant.

FULL STORY

Taiwan Semiconductor Manufacturing Company (TSMC) has started construction of
a third chip plant in Arizona according to South China Morning Post
reporting, as the company continues to expand operations in the US.

The announcement coincided with Commerce Secretary Howard Lutnick's visit to the site, highlighting the political significance of TSMC's US investment
amid the ongoing trade war.

Driven by Trump's push for domestic manufacturing, supported by hefty tariffs on imports from certain countries, the project marks the largest foreign investment in US history.

TSMC invests in more US chip manufacturing

Though TSMC flies under the radar among consumers, the Taiwanese company is a key supplier for Apple and Nvidia. Domesticating manufacturing within the US would certainly help the companies that rely on TSMC keep costs down amid
fears that tariffs could impact sales.

In March 2025, the company announced plans to invest $100 billion in the US semiconductor manufacturing industry over the next four years, adding to its existing $65 billion investment in Arizona.

Speaking with CNBC , Lutnick criticized slow permit and regulation processes that previously hampered companies' efforts to move to the US. "And what you saw today is they needed a couple of permits. We got those permits super
fast. And here we go. Theyre building it. So thats the idea," Lutnick said.

Reiterating that TSMC's plans mark the "largest foreign direct investment
ever made in the United States of America," Lutnick stressed that
domesticating manufacturing acts in the name of national security.

Besides upcoming efforts, TSMC's CEO CC Wei confirmed in this month's
quarterly earnings call that its second plant is already ramping up
operations. Its first plant has also entered high-volume production, with
yield matching those in Taiwan.

TSMC confirmed earlier this month that its first-quarter revenue rose a staggering 41.6%. CFO Wendell Huang added: "While we have not seen any
changes in our customers behavior so far, uncertainties and risks from the potential impact from tariff policies exist."

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Link to news story: https://www.techradar.com/pro/tsmc-committed-to-arizona-chip-plant-ahead-of-po tential-tariff-impact

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