TSMC has decided to prioritize America over all other nations where it is building facilities, as a new report suggests that it is pouring massive funds into, and delaying other projects.
TSMC's Second Fab in Japan Is Reportedly Delayed Indefinitely, All Focus Shifted Towards U.S. Facilities
There's no doubt that TSMC has seen massive attention when it comes to setting up fabs in America, especially after the coming of the Trump administration. When the Taiwan giant announced investments of more than $100 billion into the U.S., it managed to get the government's attention, and TSMC declared that they have made the region a priority. Now, according to a report by the Wall Street Journal, it is claimed that TSMC is delaying construction of a facility in Japan, as the company has its financial resources diverted towards America.
The sudden interest from TSMC in the U.S. isn't a "business" move; instead, it comes after pressure from President Trump, and his plans to impose as high as 100% tariffs on chips from Taiwan. TSMC has apparently shifted all of its focus to maintaining clientele demand coming from America, which is why projects in Japan and Germany are currently halted. And now, the second facility that was being made by TSMC in Japan is now faces uncertainty, with no official date of opening being told by the Taiwan giant.
Interestingly, TSMC Arizona is the only facility outside of Taiwan that is currently producing cutting-edge nodes, and most importantly, has plans to scale up to 1.4nm by the end of the decade. Firms like NVIDIA, Apple, Microsoft, and many others have asked for chips to be made in the US, and TSMC has said that they are fully booked right now in Arizona, which shows that the interest is massive right now. Especially, with the AI supply chain, NVIDIA's partners like Foxconn and Quanta are also moving to America, so it is safe to say that the Trump administration is delivering on the "Made in USA" narrative.
TSMC appears to have made the U.S. as its second home after Taiwan, and with the importance the region is seeing right now, it is evident that the Taiwan giant has big plans for the region, which are mainly driven by the fear of "Trump tariff".
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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