Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is in discussions with the White House over potential US tariffs on semiconductors, seeking a solution that benefits both sides, a senior company executive said on Friday.
Speaking at a forum hosted by the US think tank Hudson Institute in Washington, TSMC senior vice president Peter Cleveland said that the company was maintaining close communication with US President Donald Trump’s administration and is optimistic that talks were moving in a “positive direction.”
Talks were ongoing, particularly concerning Taiwan’s extensive semiconductor manufacturing ecosystem and its exports to the US, he said.
Photo: I-hwa Cheng, Bloomberg
“And they’re listening,” he added.
However, TSMC was still uncertain about what will happen on Wednesday, when Trump is expected to introduce a slew of new tariffs.
To avoid the tariffs and appease Trump, who is eager to shift manufacturing to the US, TSMC has already made substantial investments in the country. The company on March 3 committed an additional US$100 billion to build three wafer fabrication plants, two advanced integrated circuit packaging facilities, and a research and development center, bringing its total investments in Arizona to US$165 billion.
At the forum, titled “Building a Sustainable and Successful Semiconductor Ecosystem under the Trump Administration,” other industry leaders also weighed in on the potential effect of the proposed tariffs.
Jonathan Hoganson, head of US government affairs at semiconductor equipment supplier ASML Holding NV, said that industry players hope the new policy will strengthen the ecosystem rather than create barriers.
Patrick Wilson, vice president of government relations at Hsinchu City-based smartphone IC designer MediaTek Inc (聯發科), underscored the importance of fostering a favorable business environment.
“We just want to have the right tariff or regulatory environment that makes it possible for our customers to win,” he said.
TSMC is seeking to start construction of its third advanced wafer fab in Arizona soon, Cleveland said.
“We have not started to break ground on our third wafer fab in Phoenix. We would like to start next week,” he said.
To begin construction, the company needs assistance from the US government, such as an environmental permit, he said.
While Taiwan remains the “home” of the contract chipmaker, the US was an “ideal location” for TSMC to extend its global footprint, Cleveland said.
TSMC aims to roll out high-end chips from plants in Arizona, and “we’re going to build those in Phoenix to sustain the US’ AI [artificial intelligence] leadership,” he said.
The first fab in Arizona has started production using the 4-nanometer process, while the second fab, which would use the 3-nanometer, 2-nanometer and A16 processes, is under construction and is expected to begin production in 2028.
The third, of which TSMC has said little to date, is expected to begin production by 2030, using the 2-nanometer or more advanced processes, the company said in April last year.
However, production in the US has not been easy, Cleveland said.
“The United States is a different marketplace. Labor costs are high,” he said.
Nevertheless, he highlighted TSMC’s “excellent” partnership with Washington, saying the company had a “good dialogue” with the US Department of Commerce about structural issues.
“We are optimistic about our collaboration and partnership going forward with the Trump administration as well as Capitol Hill,” he said.
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