TSMC says investment plan in Taiwan unchanged amid Chiayi plant rumor

Taipei, Sept. 18 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Thursday told CNA its investment plans in Taiwan are "unchanged" amid speculation that the chipmaker may have suspended construction work on its second IC assembly plant in Chiayi County and plans to move equipment arranged for the plant to the United States.

Taiwanese media outlet Economic Daily News reported earlier on Thursday that TSMC had halted the construction of the second IC assembly plant in Chiayi County in southern Taiwan, which was scheduled to be completed in 2026 and begin mass production in 2028.

When asked by CNA, TSMC did not directly address whether the plant had halted its construction work, but instead said its investment plans in Taiwan remain "unchanged."

The media report suggested construction work at the Chiayi County plant had been suspended as TSMC wanted to accelerate the pace of its investments in the U.S. due to pressure from the administration of Donald Trump.

The report suggested that TSMC will send equipment designated for the Chiayi County plant to the U.S. state of Arizona, where it is investing US$65 billion to build three wafer fabs, with the first beginning commercial production last year.

TSMC has also pledged to invest an additional US$100 billion over the next few years to build three additional wafer fabs, two IC assembly plants and one research and development center in the United States.

A move to send IC assembly equipment to the U.S. suggested TSMC might scale back its investments in Taiwan, the report said.

The chipmaker started to build two IC assembly plants in Chiayi in 2024, using the sophisticated Chip on Wafer on Substrate (CoWoS) technology to meet strong demand for artificial intelligence applications.

Earlier this year, C.C. Wei (魏哲家), TSMC's CEO and chairman, said the company has increased investments in the U.S. in the wake of strong demand from American clients but this will not affect its plans in Taiwan.

Still, concern remains that increased investments in the U.S. will squeeze TSMC's funding in Taiwan and affect its plans in the country.