On the 3rd (local time), President Trump announced TSMC's investment in the U.S., saying, "If you build a factory here, there will be no tariffs. Therefore, he (TSMC) is leading the game," he stressed. Trump's remarks came shortly after he met with TSMC Chairman Weijer at the White House in Washington, DC.
President Trump said, "The world's most powerful artificial intelligence (AI) semiconductor will be made right here in the United States, and TSMC will make much of it," adding, "This is a matter of national security as well as economic security." "TSMC will also be able to diversify its existence (factory) to other places that are very safe," he said. He repeatedly pointed out that semiconductor companies such as TSMC are entering the U.S. and stealing our money and jobs.
TSMC announced in the announcement that it will build three △ new semiconductor production facilities (fab and fab) △ two more advanced packaging facilities △ R&D centers.
TSMC previously announced that it would invest $12 billion in Arizona in 2020 to build a semiconductor plant. It has since expanded its investment to $65 billion. In response, the former Biden administration promised $6.6 billion in subsidies under the Semiconductor Support Act (CHIPS Act). TSMC's Arizona plant began mass production last year. We are grateful that we were able to proceed with the project with President Trump's vision and support in 2020, Chairman Wei said. "We will produce many semiconductors to support AI development and smartphone development."
President Trump emphasized that TSMC is leading the competition in that it must be produced in the United States to avoid tariffs. President Trump said, "Chairman Wei is solving tariffs by building a factory here," adding, "If you build a factory in Taiwan and send it here (in the United States), it will one day be 25%, 30%, 50%, or any number." The numbers will keep going up," he said. He also said, "I want to say this to companies that have invested in Canada and Mexico. If you decided to build an automobile factory, it would be much more advantageous to build a factory here," he claimed.
At the announcement ceremony, there was also a mention of subsidies for semiconductor production. "In the Biden administration, TSMC received subsidies, which facilitated them to invest $65 billion," U.S. Secretary of Commerce Howard Rutnick said. "The U.S. gave 10% of the money (estimated investment amount) to TSMC to build (a factory) here." He stressed that TSMC's investment in the U.S. this time is not due to subsidies, but President Trump's tariff policy. "They came to the United States because they can avoid tariffs," he said. Now you see the power of President Trump," he added.
Currently, U.S.-made semiconductors are not price competitive, but the situation changes if tariffs are imposed. According to the semiconductor industry, if the Trump administration imposes tariffs of more than 25% on semiconductors, foreign semiconductors in the U.S. will be more expensive than those in the U.S. For example, semiconductors for Poundley produced at the TSMC 3nm process in Tainan, Taiwan, cost more than $18,000 per wafer, while semiconductors produced at the TSMC 3nm process in the U.S. cost more than $22,000 per wafer.
Currently, major companies such as TSMC, Samsung Electronics, Intel, and Micron could invest more in the U.S. TSMC has declared a total investment of $165 billion in Phoenix, Arizona, and Samsung Electronics is building a 3·4nm foundry plant by investing $37 billion in Taylor, Texas.
[Washington correspondent Choi Seung-jin / Seoul reporter Lee Sang-deok]
