TSMC Develops Advanced Chip Packaging Facility in the US to Mitigate Trump Tariffs and Satisfy Current Administration

Recent reports suggest that TSMC is gearing up to establish an advanced chip packaging facility in the United States, signaling a deeper commitment to strengthening its operations within the country. This development reflects a shift in TSMC’s strategy, responding to evolving geopolitical dynamics and U. S.-Taiwan relations.

Accelerating Semiconductor Production: TSMC’s Vision for the U. S.Market

Under the influence of the previous Trump administration, TSMC’s approach to semiconductor manufacturing has transformed, aligning more closely with U. S.interests. As noted by the Financial Times, the decision to impose tariffs on semiconductor imports from Taiwan has prompted TSMC to reassess its expansion strategy. The new facility in the U. S.is likely a strategic move to alleviate tariff pressures while enhancing local production capabilities.

Former President Trump has openly criticized the idea of Taiwan establishing manufacturing operations in the U. S., viewing the CHIPS Act as an unwarranted financial boon for Taiwan. In recent remarks, he reiterated his proposal to enforce tariffs on foreign chip production, emphasizing his commitment to restoring semiconductor manufacturing within American borders.

In particular, in the very near future, we’re going to be placing tariffs on foreign production of computer chips, semiconductors and pharmaceuticals to return production of these essential goods to the United States. They left us and went to Taiwan.

We want them to come back. And we don’t want to give them billions of dollars like this ridiculous program that Biden has given everybody billions of dollars. They already have billions of dollars. They’ve got nothing but money Joe. They didn’t need money.

They needed an incentive. And the incentive is gonna be they’re not gonna wanna pay a 25, 50 or even a 100 % tax.

In response to these pressures, Taiwan is reportedly advocating for a more lenient stance from the Trump administration regarding semiconductor manufacturing. This dialogue may focus on enhancing collaboration with the U. S.while reaffirming Taiwan’s commitment to maintaining advanced technology processes locally. Concerns linger in Taiwan regarding technology transfers to the U. S., with many engineers facing hurdles in relocating due to cultural differences.

TSMC getting N3E orders from various clients

As TSMC intensifies its operations, the development of its facility in Arizona is set to accelerate significantly. The company not only aims to meet the burgeoning demand for CoWoS packaging—essential for artificial intelligence applications—but also anticipates commencing 2nm mass production in 2028. This bold plan illustrates TSMC’s commitment to expanding its footprint in the U. S.semiconductor market.

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