Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on Friday said that its investments in the US would not affect its existing projects elsewhere, rejecting a report by the Wall Street Journal (WSJ) that said 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.
The world’s largest contract chipmaker said in a statement that its global expansion strategy is based on several factors, including customer demand, business opportunities, operational efficiency, government support and overall costs.
As a result, the company’s US investments would not compromise its plans in other regions, TSMC said.
Photo: Bloomberg
The Wall Street Journal said 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 the shift would delay the construction of a second plant in Kumamoto, Japan.
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. Trump has accused Taiwan of “stealing” chip business from the US and has threatened to impose tariffs as high as 100 percent on imported semiconductors.
TSMC’s first fab in Kumamoto began mass production late last year, and construction of the second fab, originally scheduled to begin early this year, has been “slightly delayed” due to local traffic concerns, TSMC chairman C.C. Wei (魏哲家) said last month, without providing a revised timeline.
Sources cited in the WSJ report said that construction could be pushed back further, although no definite schedule has been set.
TSMC’s first fab in Arizona began commercial production last year. The second plant is nearing completion, with equipment installation underway. A third fab broke ground in April. The company’s newly pledged US$100 billion investment would be used to build three more fabs, two integrated circuits assembly plants, and a research and development center.
However, TSMC in May said that any future tariffs on Taiwanese chips could dampen demand and threaten its expansion plans in the US.
Elsewhere, TSMC has also begun building a new fab in Dresden, Germany, with production expected to begin in 2027.
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