TSMC says U.S. investment won't impact projects elsewhere

Taipei, July 5 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) said Friday that its investments in the United States will not affect its existing projects elsewhere, rejecting a report by the Wall Street Journal that claimed the company was postponing the construction of a second fabrication plant in Japan to focus on U.S. expansion amid tariff threats from U.S. President Donald Trump.

In a statement, TSMC -- the world's largest contract chipmaker -- said its global expansion strategy is based on several factors, including customer demand, business opportunities, operational efficiency, government support and overall costs.

As a result, the company emphasized that its U.S. investments will not compromise its plans in other regions.

According to the Wall Street Journal, TSMC is taking Trump's tariff threats seriously and is diverting resources to speed up investments in Arizona, where the company is already building a large chip manufacturing hub. The report suggested that this shift is delaying the construction of a second plant in Kumamoto, Japan.

Trump's administration has launched an investigation under Section 232 of the Trade Expansion Act of 1962, which could lead to new tariffs on semiconductor imports. Trump has accused Taiwan of "stealing" chip business from the U.S. and has threatened to impose tariffs as high as 100 percent on imported semiconductors.

TSMC's first fab in Kumamoto began mass production in late 2024, producing chips using mature 12nm, 16nm, and 28nm process technologies. The second fab, originally scheduled to begin construction in early 2025 and start operations in late 2027, will produce more advanced 6nm and 7nm chips, along with 40nm technology.

In early June, TSMC Chairman C.C. Wei (魏哲家) acknowledged that the second plant in Kumamoto had been "slightly delayed" due to local traffic concerns. Wei said nearby residents had expressed frustration over heavy traffic, and the company is working with Japanese authorities to resolve the issue. No revised timeline was provided.

Despite concerns raised in the WSJ report, Wei did not mention any political or tariff-related reasons for the delay. Sources cited in the report suggested that construction could be pushed back further, though no definite schedule has been set.

In the U.S., TSMC's first fab in Arizona began commercial production last year. The second plant is nearing completion, with equipment installation underway. A third fab broke ground in April. The newly pledged US$100 billion investment will be used to build three more fabs, two IC assembly plants, and a research and development center.

However, despite the massive commitment, TSMC warned in May that any future tariffs on Taiwanese chips could dampen demand and threaten its expansion plans in the U.S.

Elsewhere, TSMC has also begun building a new fab in Dresden, Germany, with production expected to begin in 2027.