TSMC is now rumored to have plans to develop an advanced chip packaging facility in the US, as the Taiwan giant shows more dedication towards TSMC-US relations.
TSMC Looks To Accelerate Its Semiconductor Plans For The US; 2nm Mass Production In Arizona Now Set For 2028
TSMC seems to be greatly influenced by the Trump administration and its stance toward semiconductor production in Taiwan, which is why the firm appears to be more determined to bring production to the US. According to the Financial Times, it is now reported that under Trump's decision to impose chip tariffs on Taiwan, TSMC has softened its stance towards expansion in the US and is now reportedly preparing for an advanced chip packaging facility in the US, hoping that this would wave off the tariff pressure.
For those unaware, Trump has always opposed facilitating Taiwan's setting up facilities in the US and has even criticized the CHIPS Act, claiming that it is like "gifting out" money to Taiwan. To add up, in a recent House Republican talk, Trump reiterated his plans to impose chip tariffs on Taiwan and propose high taxation on chipmakers.
In particular, 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. They left us and 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 given everybody billions of dollars. They already have billions of dollars. They’ve got nothing but money Joe. They didn’t need money.
They needed an incentive. And the incentive is gonna be they’re not gonna wanna pay a 25, 50 or even a 100 % tax.
In light of this, it is now claimed that Taiwan is now pushing towards convincing the Trump administration not to take a harsh stance on chip manufacturing in the nation, and a part of the deal might include increased cooperation towards the US. Taiwan has expressed concerns in the past that they are completely against a "technology transfer" to the US and that cutting-edge processes should remain in the nation. Moreover, shifting R&D has also been difficult for Taiwan since Taiwanese engineers have found it challenging to settle in US facilities, considering the cultural differences.
TSMC-US relations do look to grow massively since the firm is now said to accelerate the development of its Arizona facility. Not just this, but the Taiwan giant could potentially set up an advanced chip packaging facility in the US as well, allowing them to cater to the giant CoWoS demand, which has been a key element of the AI supply chain. Moreover, TSMC Arizona is said to initiate 2nm production by 2028 in the US, showing that TSMC is more eager than ever to expand in the US.
