Taiwan Semiconductor Manufacturing Company (TSMC) is set to reinvest at least 100 billion US dollars (about 3.3 trillion New Taiwan dollars) into the United States. This investment will be used for the construction of three semiconductor fabs, two advanced packaging plants, and a research and development center. The key questions surrounding this increased investment include its value, the impact on profits, and the global implications of TSMC’s expansion.
When combined with the planned 65 billion US dollars investment during the Biden administration, TSMC’s total investment in the United States will reach 165 billion US dollars. This substantial investment not only poses a challenge to capital expenditures in Taiwan, Japan, and Germany but may also catalyze more equipment and material suppliers in TSMC’s supply chain to increase their investments in Arizona. This shift could significantly affect Taiwan’s semiconductor supply chain, increasing future cooperation and dependency between Taiwan’s semiconductor supply chain and the United States.
Since taking office, President Donald Trump has actively promoted the reshoring of manufacturing to the United States through measures such as tariffs. This effort aims to enhance America’s position and competitiveness in the semiconductor industry, potentially leading to the creation of more job opportunities.
During a press conference at the White House on the 3rd, Trump announced TSMC’s latest investment in the United States. He emphasized that TSMC’s expansion of investment in the United States will help avoid significant tariffs on chip imports. Trump highlighted Taiwan’s dominant position in chip production, stating that TSMC’s increased investment in the United States is crucial for economic security and national security. Additionally, diversifying their manufacturing locations allows TSMC to enhance its security measures.
In conclusion, TSMC’s substantial reinvestment in the United States showcases the company’s commitment to strengthening its presence in the country and fostering closer ties between the semiconductor industries of Taiwan and the United States. This strategic move not only aligns with the efforts to bolster America’s manufacturing sector but also underscores the evolving dynamics of global semiconductor supply chains.