On January 15, a new U.S.-Taiwan tariff agreement took effect, reducing tariffs on Taiwanese products from 20% to 15% without stacking existing rates. The deal requires Taiwanese semiconductor firms to add $250 billion in new U.S. investments, with TSMC’s previously pledged $100 billion investment included. Addressing the agreement and TSMC’s global capacity strategy, CFO Wendell Huang sent a clear strategic message.
Huang emphasized that TSMC was not involved in negotiating the tariff agreement and reiterated a firm commitment: “The most advanced technology will remain in Taiwan.” He explained that developing and manufacturing leading-edge nodes requires intensive coordination, mobilizing hundreds of engineers across different sites in Taiwan. This deeply interconnected technical ecosystem is the key reason for keeping cutting-edge processes rooted in Taiwan.
Regarding U.S. expansion, TSMC’s moves are driven by customer demand, complementing its core technology strategy. Currently, the first fab in Arizona has begun volume production, with yields matching Taiwan fabs and capacity steadily ramping. Expansion plans are clear: equipment for the second fab will move in this year, the third fab is already under construction, and TSMC is actively applying for permits for a fourth fab and an advanced packaging facility.
To build a complete industrial ecosystem, TSMC has acquired two plots totaling 2,000 acres in Arizona, planning a super fab cluster that includes six fabs, two packaging plants, and one R&D center to align with long-term needs of core clients such as those in AI. Notably, the third Arizona fab is scheduled to start 2nm production in the second half of 2027. While advanced nodes will be introduced overseas, Taiwan will remain the R&D and manufacturing hub for the most leading-edge technologies.
ICgoodFind : By keeping its most advanced processes in Taiwan while accelerating U.S. capacity clusters, TSMC strengthens its technology moat while meeting client demand, reinforcing its global competitive edge.
