TAIPEI (Taiwan News) — TSMC said its expansion in the US is driven by customer demand, while its most advanced manufacturing processes will remain in Taiwan, according to comments by Chief Financial Officer Wendell Huang (黃仁昭) following a Taiwan–US tariff agreement, per CNA.
Huang made the remarks in interviews after Taipei and Washington finalized an agreement Thursday to reduce US tariffs on Taiwanese imports from 20% to 15%.
Huang said TSMC was not involved in the tariff negotiations, describing them as government-to-government talks. He emphasized that decisions on overseas expansion are based on customers’ needs rather than trade policy.
“Leading technologies will be in Taiwan because it’s a heavy cooperation between R&D people and operations for practical reasons,” Huang told Bloomberg Television. He added that while some acceleration of overseas deployment could be attempted, shortening timelines to a matter of months would be “difficult and challenging.”
Speaking to CNBC International Live, Huang said TSMC is accelerating investment in Arizona in response to customer demand. He said the company’s first Arizona fab is progressing smoothly, is already operational and in mass production, and has yield rates comparable to those in Taiwan.
Huang said construction of the shell for TSMC’s second Arizona fab has been completed, with equipment scheduled to be moved in later this year. Construction of the shell for a third fab is scheduled to begin this year, while the company is also applying for permits for a fourth fab, as well as advanced packaging facilities.
He also discussed the recent purchase of a second plot of land in Arizona, explaining that the first plot, covering about 1,100 acres (4.4 million square meters), was intended to accommodate six wafer fabs, two advanced packaging plants, and a research and development center, but was found to be insufficient to support the entire plan.
As a result, TSMC acquired a second plot of about 900 acres (3.6 million square meters). Some expansion plans will be allocated to the second site, while the remainder will be reserved for flexible future use, Huang said.
Under the agreement announced on Thursday by the US Department of Commerce to lower tariffs to 15%, Taiwanese semiconductor companies have pledged to invest NT$7.89 trillion (approximately US$250 billion) in the US, with credit guarantees to be provided by the Taiwan government.
Following the announcement of the tariff deal, US Commerce Secretary Howard Lutnick said TSMC’s previously announced US$100 billion investment commitment by 2025 is included in the broader US$250 billion investment pledge by Taiwanese companies.
