TSMC’s Liu Vows More Investment In U.S. As Chip Tariffs Loom.

lessons on taiwan s lai vows more investment in us as chip tariffs loom

Taiwan Semiconductor Manufacturing Company (TSMC) Chairman Mark Liu has said that the company will increase its investments in the United States to avoid being hit by proposed US-China semiconductor tariffs.

The move comes as the world's leading contract manufacturer of chips seeks to balance relationships with Washington and Beijing, which have been at loggerheads over trade issues.

In an interview with Reuters, Liu said that the company is very actively looking for locations in the United States to expand its operations. The new investments will be in addition to the $9 billion it plans to spend on Arizona next year.

The Trump administration is considering levying tariffs on Chinese goods worth up to $300 billion, which would cover most electronics imports from China including semiconductors. This has triggered concerns among chip manufacturers like TSMC that rely heavily on China for their operations.

However, Liu said the company is confident it can weather any potential impact from such tariffs by diversifying its production bases outside of China. He added that TSMC has been working closely with US authorities to ensure they have a clear understanding of how they operate and where they source components from.

The move comes as global chip supplies tighten due to strong demand from sectors like artificial intelligence (AI) and 5G telecommunications networks. It also reflects growing concerns among chipmakers about political tensions between major economies such as China and Japan or South Korea over semiconductors trade disputes.

TSMC already has two wafer fabs in the US - one located at Phoenix, Arizona which began operations last year while another one is under construction near Austin Texas due open next year. The company also announced plans earlier this month to spend $1 billion building an advanced packaging facility in northern Japan as part of efforts diversifying production bases outside its mainstay Taiwan.

TSMC’s decision comes amid mounting tensions between Washington DC and Beijing over trade issues including US tariffs imposed on Chinese goods worth hundreds billions dollars since 2018. In response China has retaliated with its own tariffs against American products ranging from soybeans to cars resulting in total losses estimated at $29 billion according to calculations made by Bloomberg Economics last month.

The Trump administration’s proposed tariffs would hit many key industries including electronics manufacturing industry which relies heavily on Chinese components like semiconductors. Major US companies such as Apple Inc., Qualcomm Inc., Micron Technology Inc have expressed concern over potential impact from these measures on their operations and supply chains .

Edward Lance Arellano Lorilla

CEO / Co-Founder

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