Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) stated that its investments in the United States will not impact its projects in other regions, dismissing a Wall Street Journal report that suggested the company was delaying the construction of a second fabrication plant in Japan to prioritize U.S. expansion amidst tariff threats from U.S. President Donald Trump.
According to Focus Taiwan, TSMC, known as the world’s largest contract chipmaker, emphasized that its global expansion strategy considers multiple factors like customer demand, business opportunities, operational efficiency, government support, and overall costs. The company assured that its U.S. investments would not compromise plans elsewhere.
The Wall Street Journal reported that TSMC is redirecting resources to accelerate investments in Arizona, where a large chip manufacturing hub is under construction, in response to Trump’s tariff threats. This reallocation was alleged to cause delays in constructing a second plant in Kumamoto, Japan.
The Trump administration has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, which could result in new tariffs on semiconductor imports. Trump accused Taiwan of “stealing” chip business from the U.S. and has threatened to impose tariffs of up to 100 percent on imported semiconductors.
TSMC’s first fab in Kumamoto started mass production in late 2024, focusing on chips utilizing 12nm, 16nm, and 28nm process technologies. The second fab was originally slated to begin construction in early 2025 and start operations in late 2027, with more advanced 6nm and 7nm chips, along with 40nm technology.
In June, TSMC Chairman C.C. Wei acknowledged a “slight delay” in the second plant’s construction in Kumamoto due to local traffic concerns. Wei stated that nearby residents were concerned about the traffic, and the company is collaborating with Japanese authorities to address these issues. A revised timeline has not yet been provided.
Despite concerns highlighted by the WSJ report, Wei did not cite any political or tariff-related reasons for the delay. Sources in the report suggested potential further delays, but no definitive schedule has been established.
In the U.S., TSMC’s first fab in Arizona began commercial production last year, and the second plant is nearing completion with equipment installation underway. A third fab broke ground in April, and the company has pledged an additional US$100 billion investment to construct three more fabs, two IC assembly plants, and a research and development center.
However, TSMC warned in May that potential future tariffs on Taiwanese chips could reduce demand and challenge its expansion plans in the U.S.
In addition, TSMC is constructing a new fab in Dresden, Germany, with production expected to start in 2027.