TSMC warns US tariffs could derail USD 165 billion Arizona investment
The company's USD 165 billion investment aims to build advanced semiconductor fabrication facilities in the state, but TSMC warned that tariffs could reduce demand for chips and jeopardize the project's success.
ANI
May 24, 2025 14:01 IST
Taipei [Taiwan], May 24 (ANI): Taiwan Semiconductor Manufacturing Company (TSMC) has cautioned the US government that imposing tariffs on Taiwanese semiconductors could undermine its significant investment plans in Arizona, Focus Taiwan reported on Friday.
The company's USD 165 billion investment aims to build advanced semiconductor fabrication facilities in the state, but TSMC warned that tariffs could reduce demand for chips and jeopardize the project's success.
"New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona's significant investment plan in Phoenix," the chipmaker wrote in a letter to the US Department of Commerce.
TSMC argued that tariffs would increase costs for end consumers, leading to lower demand for products containing semiconductors, reported Focus Taiwan.
According to Focus Taiwan, the country's government and companies has always been unwilling to raise any voice against the "the Donald Trump administration's chaotic tariff rollout but the TSMC letter made the case that going through with them would have negative consequences."
TSMC letter stated that any import measures adopted by the trump's administration "should not create uncertainties for existing semiconductor investments," referring to its huge investments in Arizona.
In Arizona, TSMC has currently invested USD 65 billion to build three advanced wafer fabs in Arizona. "The first one has begun mass-producing chips, construction of the second fab is nearly complete, and a groundbreaking ceremony was held for the third fab last month," Focus Taiwan reported.
In March the company also planned to invest USD 100 billion in Arizona Project over next few years, to set up three more wafer fabs, two packaging and testing plants and one research and development center.
In the letter, TSMC stated that "tariffs that raise the cost of end consumer products will lower demand for such products and the semiconductor components they contain." It further added, "Therefore, TSMC respectfully requests that any remedial import measures imposed resulting from this investigation not extend to downstream end products and semi-finished products containing semiconductors."
Earlier this month, TSMC reported a significant rise in revenue figures for April 2025, attributed to surge in demand for advanced semiconductors. (ANI)
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