tsmc warns u.s. tariffs could jeopardize arizona investment

2025-05-23 tsmc

Phoenix, Friday, 23 May 2025.
tsmc is pushing back against potential u.s. tariffs on imported semiconductors. The company fears these tariffs could threaten its massive $165 billion arizona project. tsmc argues tariffs would raise costs and hurt demand. dell and hp share these concerns. intel has a more nuanced position. the commerce department is now reviewing public comments. the tariffs could impact tsmc’s clients like apple, amd, nvidia and intel. the arizona fab is already sold out through 2027.

tariff impact on tsmc arizona

tsmc is concerned that tariffs on semiconductor production equipment will raise costs [7]. these increased expenses could potentially delay the project or even compromise the economic viability of several planned and announced initiatives [7]. tsmc has requested tariff exemptions for products that are difficult to manufacture within the united states [7]. the company also suggests the u.s. government should avoid tariffs or other restrictive measures on semiconductors manufactured outside of the country, including downstream end products and semi-finished goods containing semiconductors [7].

market leadership and geopolitical concerns

the situation highlights the intricate balance between bolstering domestic chip production and maintaining global market competitiveness [5]. tsmc’s arizona plant is projected to produce about 30% of tsmc’s global output of 2-nanometer and more advanced tech [2][4]. this production is intended to satisfy u.s. demand [2]. a german media outlet notes that former u.s. president trump’s tariffs and policies encouraging high-tech companies to return to the u.s. pose a threat to taiwan’s chip industry and could weaken taiwan’s ‘silicon shield,’ which provides geopolitical security [5].

intel’s nuanced stance

intel takes a slightly different approach, advocating for the protection of domestically manufactured semiconductor wafers and their derivatives [1][4]. intel seeks exemptions from additional taxes for its supply chain, including chip-making equipment made abroad [1]. intel acknowledges that fully localizing every element of the supply chain is economically unfeasible without significant cost increases and production delays [1]. this strategy aims to allow key american chip makers to continue using foreign fabs while simultaneously rebuilding manufacturing capacity within america [1].

industry reactions and potential outcomes

dell and hp have voiced similar concerns about the potential tariffs [1]. dell argues that u.s. chip production efforts are still in early stages and lack the infrastructure needed to supply products on a large scale [4]. hp emphasizes that they must import semiconductors for their u.s. manufacturing operations, and tariffs would hinder their ability to maintain and expand domestic manufacturing [4]. one industry analyst suggests that tariffs could significantly impact the profitability of tsmc and intel, potentially leading to higher prices for consumers [4].

Bronnen

semiconductor tariffs arizona plant