TSMC warns US tariffs may derail USD 165 billion Arizona funding

Taipei [Taiwan], : Taiwan Semiconductor Manufacturing Company has cautioned the US authorities that imposing tariffs on Taiwanese semiconductors may undermine its important funding plans in Arizona, Focus Taiwan reported on Friday.

The firm’s USD 165 billion funding goals to construct superior semiconductor fabrication amenities within the state, however TSMC warned that tariffs may scale back demand for chips and jeopardize the venture’s success.

“New import restrictions may jeopardize present US management within the aggressive know-how trade and create uncertainties for a lot of dedicated semiconductor capital tasks within the US, together with TSMC Arizona’s important funding plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce.

TSMC argued that tariffs would improve prices for finish shoppers, resulting in decrease demand for merchandise containing semiconductors, reported Focus Taiwan.

According to Focus Taiwan, the nation’s authorities and firms has all the time been unwilling to lift any voice towards the “the Donald Trump administration’s chaotic tariff rollout however the TSMC letter made the case that going by way of with them would have unfavourable penalties.”

TSMC letter acknowledged that any import measures adopted by the trump’s administration “mustn’t create uncertainties for current semiconductor investments,” referring to its enormous investments in Arizona.

In Arizona, TSMC has at present invested USD 65 billion to construct three superior wafer fabs in Arizona. “The first one has begun mass-producing chips, building of the second fab is sort of full, and a groundbreaking ceremony was held for the third fab final month,” Focus Taiwan reported.

In March the corporate additionally deliberate to speculate USD 100 billion in Arizona Project over subsequent few years, to arrange three extra wafer fabs, two packaging and testing vegetation and one analysis and growth middle.

In the letter, TSMC acknowledged that “tariffs that elevate the price of finish client merchandise will decrease demand for such merchandise and the semiconductor parts they comprise.” It additional added, “Therefore, TSMC respectfully requests that any remedial import measures imposed ensuing from this investigation not prolong to downstream finish merchandise and semi-finished merchandise containing semiconductors.”

Earlier this month, TSMC reported a big rise in income figures for April 2025, attributed to surge in demand for superior semiconductors.

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