Overview
- A tentative trade arrangement under discussion would set U.S. tariffs on Taiwanese goods near 15% in exchange for at least $250 billion of U.S. investment by Taiwan’s tech firms led by TSMC.
- TSMC has begun installing equipment at its second Arizona fab, targeted for mass production in 2027, and this year started building a third facility.
- The company has budgeted $65 billion for three Arizona fabs and pledged a further $100 billion for additional fabs, assembly capacity, and a research center.
- Taiwanese economists estimate 75%–80% of the semiconductor supply chain remains on the island by 2030, with fewer than 15% of TSMC’s most advanced processes likely to shift to the U.S. by the end of President Trump’s term.
- Taiwan officials defend the U.S. buildout as customer-led given that 74% of TSMC clients are in North America, projecting an 85%–15% Taiwan–U.S. split in sub‑5nm capacity by 2030 and highlighting U.S. support on land, utilities, infrastructure, tax incentives, and visas.