tsmc addresses concerns over taiwan fab amid us expansion

2025-09-18 tsmc

chiayi, Thursday, 18 September 2025.
recent reports suggested tsmc might halt construction of its second advanced packaging plant in chiayi, taiwan. this was supposedly to accommodate its massive us expansion. tsmc has refuted these claims. the company insists its commitment to taiwanese investments remains firm. this is despite allocating significant resources to building wafer fabs and advanced packaging facilities in arizona. the arizona expansion addresses high demand from us clients. tsmc’s reassurance aims to quell concerns about a potential shift in its global investment strategy.

taiwan investment commitment

tsmc addressed concerns directly, stating it remains committed to investing in taiwan [1][6]. the company’s response follows reports suggesting a potential halt to the chiayi advanced packaging plant’s second phase [1][7]. tsmc’s plans for taiwan are reportedly unchanged, despite a significant $100 billion investment in us expansion announced in march 2025 [1]. this commitment aims to reassure investors and stakeholders about tsmc’s dedication to its domestic manufacturing base [1].

u.s. expansion details

the u.s. expansion involves a substantial $165 billion investment in arizona [1][6]. this includes constructing six wafer fabs, two advanced packaging plants, and a research and development center [1]. chairman wei has stated that the increased u.s. investment responds to strong demand from american clients and will not affect tsmc’s taiwanese investments [1][6]. this clarification is crucial for maintaining investor confidence amid geopolitical tensions [GPT].

chiayi fab timeline

chiayi county magistrate weng chang-liang previously stated that the first advanced packaging plant in chiayi is on track to begin equipment installation in the third quarter of 2025 [1][6]. the second plant is scheduled for completion in 2026, with both plants expected to commence mass production in 2028 [1][6]. these timelines indicate tsmc’s ongoing efforts to enhance its advanced packaging capabilities in taiwan, despite u.s. expansion [1].

stock market reaction

tsmc’s stock closed at $145.20 on september 16, 2025, reflecting a 0.8% decrease [1]. earlier, on the same day, tsmc shares had closed at a record high of $1280, up $30 after the ex-dividend day, with foreign investors purchasing over 13,671 thousand shares [1]. analysts attribute stock fluctuations to geopolitical tensions and market reactions to investment strategy adjustments [1]. an analyst at global securities noted the market’s sensitivity to cross-strait relations [1].

manufacturing capacity and geopolitical risks

the denial of halting the chiayi plant addresses concerns about tsmc’s manufacturing capacity allocation [1]. prioritizing both u.s. and taiwanese facilities mitigates risks associated with geographical concentration [GPT]. geopolitical tensions between taiwan and china continue to influence investor sentiment [1]. tsmc’s strategy to diversify its manufacturing footprint aims to reduce vulnerability to regional disruptions [GPT].

tsmc’s market leadership

tsmc’s proactive communication about its investment plans reinforces its market leadership [GPT]. the company’s commitment to both taiwan and the u.s. demonstrates its ability to balance global demands and maintain technological advancement [GPT]. by addressing concerns about production capacity and geopolitical risks, tsmc aims to sustain investor confidence and solidify its position in the semiconductor industry [GPT].

Bronnen

tsmc manufacturing