Chipmaker TSMC’s US-investment vow shows Asia a way around tariffs
TSMC, LG and Samsung are among those intending to bring some operations to the US in the face of Trump’s trade threats
US President Donald Trump on Monday announced the TSMC investment in three new chip-fabrication plants, two packaging facilities, and a research and development centre, potentially adding 20,000 to 25,000 jobs in the US state of Arizona.
The president, who advocates more onshoring of industry to stimulate the US economy, said that without TSMC’s commitment, tariffs on its chip imports might otherwise reach an eventual 25-50 per cent.
Other major East Asian chipmakers will probably move production to the US, too, as “the Trump administration’s threat of tariffs on imported semiconductors poses a serious challenge for the region’s tech-heavy economies”, said Jeemin Bang, a Taiwan analyst for Moody’s Analytics.
South Korean electronics giants LG and Samsung, for example, were considering moving plants to the US, Korean media outlets reported in January. Both companies develop chips.
The White House statement said Trump had “secured” nearly US$2 trillion in US-based investment and that “the best is yet to come”.
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Donald Trump unveils US$100 billion investment plan by Taiwanese chip giant TSMC
Taiwan should be extra safe from chip tariffs, as its many smaller fabs do not sell directly to the US, or they lack TSMC’s coveted level of advanced technology, and are therefore not on Trump’s radar, analysts said.