TSMC Prioritizes US Over Japan Due to Tariffs

In a strategic move influenced by the current US tariff policies under President Donald Trump, Taiwan Semiconductor Manufacturing Company (TSMC) has decided to postpone the construction of its second chip factory in Japan. This decision underscores the company's commitment to expanding its operations in the United States, despite the challenges posed by tariffs.

Impact on TSMC's Global Operations

Originally, TSMC had planned to commence the construction of its second Japanese plant early this year, following the successful launch of its first facility last fall. However, logistical issues, including excessive car traffic in the area, led to initial delays. Now, the company faces further postponements, with no clear timeline for when construction might begin.

TSMC's CEO C. C. Wei has openly discussed the impact of US tariffs on the company, noting that while demand for TSMC's products continues to outpace supply, the tariffs have undeniably affected their operational strategies. This situation highlights the delicate balance TSMC must maintain between meeting global demand and navigating the complexities of international trade policies.