TSMC denies media reports on US expansion impacting global projects

TAIPEI: The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), stated that the company’s investments in the United States will not impact its existing projects elsewhere, as reported by Focus Taiwan.

TSMC denied the report by the Wall Street Journal claiming that the company was postponing the construction of a second fabrication plant in Japan to focus on US expansion amid tariff threats from US President Donald Trump.

TSMC’s global expansion strategy is based on several factors, including customer demand, business opportunities, operational efficiency, government support and overall costs, reports Focus Taiwan quoting TSMC’s statement. The company additionally emphasised that its US investments will not compromise its plans in other regions.

The Wall Street Journal reported that TSMC is taking Trump’s tariff threats seriously and is diverting resources to speed up investments in Arizona, where the company is already building a large chip manufacturing hub. The report suggested that this shift is delaying the construction of a second plant in Kumamoto, Japan.

US President Donald Trump has accused Taiwan of “stealing” the chip business from the U.S. and has threatened to impose tariffs as high as 100 per cent on imported semiconductors. In that regard, Trump’s administration has launched an investigation under Section 232 of the Trade Expansion Act of 1962, which could lead to new tariffs on semiconductor imports.

TSMC chairman C C Wei did not mention any political or tariff-related reasons for the delay of the second plant in Kumamoto. He rather mentioned “slightly delayed” due to local traffic concerns.

In the US, TSMC’s first fab in Arizona began commercial production last year. The second plant is nearing completion, with equipment installation under way. A third fab broke ground in April. The newly pledged $100 billion investment will be used to build three more fabs, two IC assembly plants, and a research and development centre. (ANI)