TSMC's $165B Arizona Bet at Risk: Tariff Tensions Rise

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chipmaker, has raised alarms over U.S. tariffs that could jeopardize its massive $165 billion investment in Arizona. As U.S. President Donald Trump threatens up to 100% tariffs on Taiwanese semiconductors, accusing Taiwan of "stealing" the chip industry, TSMC warns of severe consequences for its U.S. expansion plans. Here’s why this matters:

• Economic Impact: TSMC’s Arizona project includes three factories, aiming to produce advanced 2nm chips, boosting U.S. tech leadership.
• Tariff Risks: Tariffs could raise chip costs, reduce demand, and delay TSMC’s Arizona factory timelines, affecting global supply chains.
• Job Creation: The project promises 20,000+ high-tech jobs, but uncertainties from tariffs could stall progress.
• Global Competition: TSMC’s investment strengthens U.S. chip production, countering reliance on Asian manufacturing amid rising geopolitical tensions.

TSMC Arizona Investment Snapshot

Aspect	Details
Investment	$165 Billion
Factories	3 (2nm & A16 tech)
Jobs	20,000+
Tariff Threat	Up to 100%

TSMC’s plea to exempt its Arizona operations from tariffs highlights the delicate balance between trade policies and tech innovation. Will the U.S. prioritize domestic chip production or risk derailing a critical investment?[](https://www.tribuneindia.com/news/business/tsmc-warns-us-tariffs-could-derail-usd-165-billion-arizona-investment/)[](https://www.pcmag.com/news/tsmc-to-white-house-you-want-us-made-chips-knock-it-off-with-the-tariffs)

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