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Juan Carlos López
Senior WriterAn engineer by training. A science and tech journalist by passion, vocation, and conviction. I've been writing professionally for over two decades, and I suspect I still have a long way to go. At Xataka, I write about many topics, but I mainly enjoy covering nuclear fusion, quantum physics, quantum computers, microprocessors, and TVs.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Over the past two years, TSMC has been readying three state-of-the-art semiconductor fabrication plants in Arizona. The company will invest around $65 billion in these facilities. However, the actual costs may be significantly higher, given that each advanced chip production plant costs about $30 billion. The remainder of the funding will come from grants approved by the Biden administration.
For TSMC, expanding its integrated circuit production infrastructure beyond Taiwan is essential. A strong network of factories outside the island is crucial for sustaining its business, especially in the event of a future conflict with China. Additionally, TSMC has a vested interest in establishing more chip plants in the U.S. due to President Donald Trump’s tariffs on imported goods.
Tariffs Are Strengthening the U.S. Tech Ecosystem
In late January, Trump issued a stark warning to TSMC: “In the very near future, we’re going to be placing tariffs on foreign production of computer chips, semiconductors and pharmaceuticals to return production of these essential goods to the United States of America. They left us, and they went to Taiwan… We want them to come back, and we don’t want to give them billions of dollars like this ridiculous program that Biden has... They already have billions of dollars… They didn’t need money. They needed an incentive, and the incentive is going to be that they’re not going to want to pay a 25, 50, or even 100 percent tax.”
Although Trump’s statement specifically targets TSMC, the government has indicated that it’ll impose tariffs on all electronic devices that incorporate foreign-produced chips, regardless of whether they belong to U.S. companies. This announcement has prompted major U.S. technology companies like Apple to discuss strategies for evading these tariffs with the administration.
In fact, Apple recently announced a plan to invest $500 billion in the U.S. over the next four years, aiming to mitigate the threat of tariffs. This investment will partially fund the construction of a new AI server factory in Houston, the establishment of a training center in Detroit, and the creation of 20,000 new jobs. TSMC has also confirmed similar plans.
TSMC CEO C.C. Wei, alongside Trump and commerce secretary Howard Lutnick, announced on Monday that the company will invest at least $100 billion to build five new semiconductor production plants in the U.S. These new facilities will complement TSMC’s ongoing projects in Arizona, where the first of three factories has already begun chip production.
Three of the five new plants will be state-of-the-art integrated circuit manufacturing facilities, while two will focus on advanced chip packaging. Additionally, TSMC plans to establish a research and development center. The company projects that these facilities will create around 40,000 jobs.
Notably, this development benefits both parties. The U.S. government aims to reduce its dependence on foreign-made chips and seize control of 40% of global semiconductor production. Meanwhile, TSMC safeguards itself against potential future conflicts between China and Taiwan and avoids U.S. tariffs.
Image | TSMC
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