Phoenix: U.S. President Donald Trump surprised many by suggesting that Taiwan Semiconductor Manufacturing Company (TSMC) could be investing US$300 billion in Arizona, which is almost twice the investment TSMC has previously announced in the United States. Trump made these comments during an interview on CNBC’s “Squawk Box,” where he also mentioned forthcoming tariffs on semiconductors and chips to promote domestic production.
According to Focus Taiwan, TSMC declined to comment on Trump’s statements, indicating that any official announcements would be released through company channels. Following Trump’s remarks, TSMC’s American depositary receipts experienced a decrease of 2.73 percent, closing at US$232.47. The company’s shares on the Taiwan Stock Exchange also fell by NT$25 to NT$1,125, marking a 2.17 percent drop. This decline affected Taiwan’s market, pulling the weighted index down by approximately 201 points and wiping out NT$648.3 billion from the market.
Trump’s investment claim has generated interest in Taiwan, especially amid the ongoing tariff situation. Taiwan currently faces a 20 percent tariff on goods imported into the U.S., compared to the 15 percent tariffs imposed on Japan and South Korea. Speculation suggests that Taiwan might need to commit a substantial investment to reduce these tariffs, with Economic Affairs Minister Kuo Jyh-huei hinting at a possible US$400 billion investment target.
In March, TSMC announced plans to expand its U.S. investment to US$165 billion, aiming to boost AI advancements. This expansion includes building three new chip fabrication plants and additional facilities, expecting to generate over US$200 billion in indirect economic output in the U.S. over the next decade. However, in May, TSMC cautioned the U.S. Department of Commerce that new import restrictions could negatively impact U.S. leadership in the technology sector and create uncertainties for semiconductor projects in the U.S., including TSMC’s significant investment plan in Phoenix.
During a July investor briefing, TSMC Chairman and CEO C.C. Wei revealed that construction of the company’s second Arizona fab, utilizing 3 nanometer process technology, was completed. Further planned fabs will adopt 2 nm and more advanced technologies based on demand. Wei noted that TSMC is transforming its Arizona site into a cutting-edge semiconductor base, with a significant portion of its advanced process technologies expected to originate from the U.S.