TSMC Warns: US Tariffs May Thwart $165 Billion Arizona Project

Taipei [
Taiwan
], May 24 (ANI):
Taiwan
Semiconductor Manufacturing Company (
TSMC
) has cautioned the
US
government that imposing
tariffs
on
Taiwan
These semiconductors might jeopardize its substantial investment plans.
Arizona
, Focus
Taiwan
reported on Friday.

The company’s
US
A $165 billion investment is planned to construct cutting-edge semiconductor manufacturing plants in the state, but
TSMC
warned that
tariffs
might lessen the need for chips and put the project’s success at risk.

Upcoming import limitations might put present circumstances at risk.
US
Leadership within the cutthroat tech sector can generate uncertainties for numerous dedicated semiconductor capital initiatives.
US
, including
TSMC
Arizona
“significant financial strategy for Phoenix,” the semiconductor company stated in a letter to the
US
Department of Commerce.

TSMC
argued that
tariffs
This would raise expenses for final buyers, resulting in decreased product demand within items that include semiconductors, as stated by Focus.
Taiwan
.

According to Focus
Taiwan
, the nation’s authorities and businesses have consistently refrained from voicing opposition to the “chaotic tariff rollouts implemented under the Donald Trump administration.”
TSMC
The letter argued that proceeding with them would result in adverse outcomes.

TSMC
The letter indicated that any import actions taken by the Trump administration should not introduce uncertainties regarding current semiconductor investments, alluding to their significant investments in this sector.
Arizona
.

In
Arizona
,
TSMC
has currently invested
US
$65 billion to construct three state-of-the-art wafer fabrication plants
Arizona
The initial company has started mass-producing chips, the construction of the second fabrication plant is almost finished, and a ground-breaking ceremony for the third facility took place last month,
Taiwan
reported.

In March, the company also intended to invest
US
D 100 billion in
Arizona
The project over the coming several years aims to establish an additional three wafer fabrication facilities, two assembly and test sites, along with one R&D center.

In the letter,
TSMC
stated that ”
tariffs
This increases the price of final consumer goods, which reduces their demand as well as the demand for the semiconductor components included in these products.” Additionally, it stated, “Consequently,”
TSMC
humbly asks that any corrective import actions initiated due to this inquiry do not apply to final goods and partially finished items that include semiconductors.

Earlier this month,
TSMC
showed a notable increase in revenue for April 2025, largely due to heightened demand for sophisticated semiconductor chips. (ANI)