TAIPEI (Taiwan News) — TSMC has cautioned that future US tariffs on semiconductor imports could threaten global demand for chips and jeopardize its major investment in Arizona.

In a statement submitted to the US Department of Commerce’s Bureau of Industry and Security in early May, TSMC’s Arizona subsidiary urged the Trump administration to avoid actions that could disrupt ongoing projects vital to US national security and economic interests.

“Any measures the administration adopts should ‘do no harm’ to US government security policy goals, which include TSMC Arizona’s advanced semiconductor production,” the company stated.

The comments were submitted in response to the US' Section 232 investigation under the Trade Expansion Act, which seeks to determine whether reliance on foreign-made semiconductors poses a national security risk. Although no final decision has been made, the inquiry has raised concerns in major chip-producing countries, including Taiwan, Japan, and South Korea.

TSMC confirmed Thursday with CNA that its Arizona unit had provided feedback to the commerce department but declined to disclose further details.

The company warned that tariffs on semiconductor manufacturing equipment could raise project costs, delay construction schedules, and potentially jeopardize the viability of its new fabs. It called on the administration to exempt companies like TSMC, which have already made significant US investments, from any import restrictions.

TSMC first announced plans to build an advanced chip fabrication plant in Arizona in 2020 to meet growing demand from US customers. That initiative has since expanded into a US$65 billion project involving three leading-edge fabs in Phoenix.

In March, TSMC pledged an additional NT$3 trillion (US$100 billion) to its US expansion. The latest plan includes three more advanced logic fabs, two packaging facilities, and a major research and development center, bringing the total investment to US$165 billion.

TSMC stated that building such facilities requires extensive coordination across a global supply chain. The company said that advanced chips produced in Arizona must operate alongside legacy semiconductors and components sourced from other regions.

“New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the company said.

TSMC also warned that tariffs on finished or semi-finished goods containing semiconductors could suppress consumer demand, which would ultimately reduce chip demand. This, in turn, could create uncertainty around the timeline and financial feasibility of its Arizona expansion.

TSMC urged the administration to maintain a stable, innovation-friendly business environment, which it described as essential for the long-term success of the US semiconductor industry.