tsmc board meets in Arizona amid looming US tariff concerns

2025-02-12 tsmc

Arizona, Wednesday, 12 February 2025.
The Taiwan Semiconductor Manufacturing Company (TSMC) held an extraordinary board meeting in Arizona, drawing attention due to its rarity and timing. The meeting comes as U.S. President Trump prepares to announce significant tariffs on semiconductor imports, potentially impacting TSMC’s operations. The board’s agenda is seen as an effort to align with ‘Made in America’ initiatives and to mitigate the potential effects of these looming tariffs. TSMC is exploring strategies to expand its manufacturing footprint in the U.S., which may include increased investments and relocating advanced process technology to the Arizona facility. With impending U.S. tariffs threatening to disrupt the global semiconductor supply chain, TSMC’s proactive engagement with U.S. leaders signals a strategic pivot towards deeper bilateral cooperation. The outcomes of the board meeting could have significant implications for TSMC’s future operations and the broader semiconductor industry.

Historic meeting amid tariff tensions

In an unprecedented move, TSMC held its first board meeting outside Taiwan in 37 years at its Arizona facility [1][2]. The timing is crucial as President Trump is expected to announce a potential 100% tariff on semiconductor imports on February 18, 2025 [1][3]. This strategic gathering comes as TSMC faces pressure from the Trump administration, which claims Taiwan controls 98% of global chip production [4].

Investment expansion and technology transfer

TSMC’s Arizona presence already represents a $65 billion investment with three fabrication plants [1]. The first facility is currently producing 4nm chips, with plans for 3nm production by 2028 and 2nm or smaller by 2030 [1]. The board is considering accelerating the timeline for advanced process technology transfer to the U.S. and potentially establishing advanced packaging capabilities [5][6].

Strategic response to US pressure

The company faces a delicate balance between appeasing U.S. demands and maintaining its operational model. Industry analysts suggest TSMC might announce expanded investments and accelerated technology transfers to the U.S. [5]. Key customers including Apple and NVIDIA could play crucial roles in lobbying against the tariffs, as they would bear significant impact from such measures [4].

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