tsmc addresses taiwan expansion concerns amid arizona growth
Taipei, Thursday, 18 September 2025.
amid rumors of tsmc prioritizing its arizona expansion by allegedly pausing its chiayi, taiwan, plant and shifting equipment to the us, tsmc swiftly denied these claims. the company affirmed its commitment to taiwanese investments, stating that current plans remain unchanged. the ministry of economic affairs has offered full support to tsmc to ensure the chiayi plant’s timely completion, highlighting the government’s commitment. investors are advised to keep a close watch on tsmc’s capital expenditure strategies. any major shifts could significantly influence tsmc’s stock performance and future growth trajectory.
taiwan investment commitment
tsmc’s response to the rumors highlights its dedication to maintaining its manufacturing and technological base in taiwan [1][2][3]. the company’s spokesperson stated clearly that investment plans in taiwan remain unchanged, directly addressing concerns about a potential shift in focus towards the united states [2]. this reassurance is crucial for investor confidence, as taiwan represents a significant portion of tsmc’s existing and planned capacity for advanced semiconductor manufacturing [GPT]. further investment in advanced packaging technologies in taiwan signals a strategic move to solidify its technological leadership [1].
arizona expansion and geopolitical factors
the expansion in arizona, with investments totaling $165 billion, including six wafer fabs, two advanced packaging plants, and a research and development center, is driven by substantial demand from us clients [1][3]. however, this expansion has raised concerns about potential impact on tsmc’s taiwanese operations [4]. some analysts believe that tsmc’s adjustments are strategic responses to pressures from the us government, particularly regarding tariffs on semiconductors [4]. tsmc aims to mitigate risks associated with potential tariffs by establishing advanced packaging capabilities within the united states [4].
impact on manufacturing capacity and market leadership
tsmc’s capacity expansion, both in taiwan and the us, is critical for maintaining its market leadership in the semiconductor industry [1]. the company’s advanced packaging plant in chiayi is slated to have its first phase of equipment installed in the third quarter of 2025, with the second phase expected to be completed in 2026 [1][3]. both plants are projected to begin mass production by 2028 [3]. these timelines are essential for meeting the rising demand for advanced chips used in artificial intelligence, high-performance computing, and other cutting-edge applications [GPT].
government support and economic implications
the ministry of economic affairs in taiwan has pledged its full support to tsmc, offering assistance to expedite the completion of the chiayi plant [1][5]. ho chin-tsang, the deputy minister of economic affairs, emphasized that the ministry would cooperate fully to help accelerate the plant’s construction if tsmc needs any measures to be assisted by the government [1]. this support underscores the strategic importance of tsmc to taiwan’s economy and the government’s commitment to ensuring its continued success [GPT]. the potential electricity price adjustments could impact approximately 14 million households [2].
investor considerations and tsmc’s stock
investors should closely monitor tsmc’s capital expenditure and geographic allocation strategies, as these factors can significantly influence its stock (tsm:nyse) [1]. any perceived shift away from taiwan could negatively impact investor sentiment, given taiwan’s crucial role in tsmc’s advanced manufacturing capabilities [1][4]. however, tsmc’s reaffirmation of its commitment to taiwan, coupled with government support, may reassure investors [1]. the company’s ability to balance its expansion in the us with its continued investments in taiwan will be critical for sustaining its market leadership and driving long-term growth [GPT].