Taiwan Semiconductor Manufacturing Co. (TSMC) has warned that proposed U.S. tariffs on foreign-made chips could jeopardize its massive US$165 billion investment in advanced semiconductor manufacturing facilities in Arizona. In a public comment submitted to the U.S. Commerce Department, the company cautioned that reduced demand resulting from the tariffs could impact the viability of its U.S. operations, according to a report by PC Mag.
TSMC highlighted that its Arizona fabs will eventually account for about 30% of the company’s global capacity for cutting-edge 2nm and more advanced chips—enough to meet projected U.S. demand. The chipmaker also confirmed it has begun construction on a third fabrication plant in the state, which will initially produce 2nm chips and later adopt its next-generation A16 process technology.
Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest contract chipmaker and a key player in the global semiconductor supply chain. It produces advanced chips for major tech firms like Apple, NVIDIA, and AMD, and is known for leading-edge manufacturing technologies such as 3nm and 2nm process nodes.
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