Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) has reiterated that its investment plans in Taiwan remain "unchanged," despite rumors suggesting a halt in construction at its second IC assembly plant in Chiayi County. Speculation arose that TSMC might redirect equipment intended for this plant to its operations in the United States.

According to Focus Taiwan, the Economic Daily News reported that construction on the Chiayi County plant, originally set for completion in 2026 with mass production slated for 2028, had been suspended. This move was reportedly to expedite TSMC's investments in the U.S., influenced by pressure from the administration of former President Donald Trump.

TSMC has declined to confirm whether construction at the Chiayi site has indeed stopped, but emphasized that its investment strategy in Taiwan remains consistent. The media outlet suggested that the equipment from the Chiayi plant could be relocated to Arizona, where TSMC is investing $65 billion in three wafer fabrication facilities, with the first already operational.

Additionally, TSMC plans to invest another $100 billion in the coming years to develop three more wafer fabs, two IC assembly plants, and a research and development center in the U.S. This potential shift in resources raised concerns about a possible reduction in TSMC's Taiwanese investments.

The Chiayi IC assembly plants, initiated in 2024, are part of TSMC's strategy to meet growing demand for artificial intelligence applications, utilizing advanced Chip on Wafer on Substrate (CoWoS) technology. Earlier statements from TSMC's CEO and chairman, C.C. Wei, affirmed that while U.S. investments have increased due to American client demand, they would not impact Taiwan-based plans.

Nonetheless, industry observers remain cautious about whether U.S. investments could eventually limit TSMC's financial resources for its Taiwan projects.