Semiconductor giant TSMC has firmly denied media reports suggesting its expansion in the United States is impacting global projects, particularly its second fabrication plant in Japan, amid rising geopolitical and trade tensions.
The clarification comes in response to a Wall Street Journal report which claimed that Taiwan Semiconductor Manufacturing Company (TSMC) was delaying the construction of a second fab in Kumamoto, Japan, in order to prioritize investments in the U.S., prompted by tariff threats from President Donald Trump.
In a statement quoted by Focus Taiwan, TSMC reiterated that its global expansion strategy remains guided by customer demand, business opportunities, operational efficiency, government incentives, and cost considerations — not political pressure.
“Our investments in the U.S. will not affect our existing or planned projects in other regions,” the company said.
The WSJ report had highlighted concerns within TSMC about Trump’s proposed 100% tariffs on imported semiconductors, and suggested the firm was reallocating resources to speed up its Arizona operations. TSMC, however, dismissed this narrative.
TSMC Chairman C.C. Wei attributed the minor delay in the Japan plant to local traffic concerns, not geopolitical factors or tariff threats.
In Arizona, TSMC’s first fabrication facility began commercial operations last year. A second fab is nearing completion, with equipment installation in progress. A third facility also broke ground in April, part of a broader USD 100 billion investment which includes:
- Three chip fabs
- Two IC assembly plants
- A research and development center
Meanwhile, the Trump administration has launched a Section 232 investigation under the Trade Expansion Act of 1962, which could pave the way for sweeping tariffs on semiconductor imports, citing concerns over national security and trade imbalances.
Despite mounting external pressure, TSMC’s latest statement affirms its commitment to a balanced global footprint, including continued investment in Japan and other key markets.