Suspense crime, Digital Desk : Taiwan Semiconductor Manufacturing Company (TSMC) has responded to Trump’s tariff threats by saying that new tariffs on Taiwanese semiconductors could seriously disrupt investment and operations in Arizona.

Commerical Relations Between TMSC and the U.S. Government

In an open letter to the respective officials of the Department of Commerce, TSMC explained how imposing sui generis import control on Taiwanese semiconductors would “jeopardize TSMC’s $165 billion investment on building a factory in Phoenix, Arizona, on boosting U.S. global superpower status.” The letter, TSMC warned, would “free rein to industry competitors, winning them superpower status instead.” TSMC further explained that such measures would put in jeopardy the investment allocated by the Taiwanese semiconductor powerhouse in building a cutting-edge semiconductor facility.

The company also stressed such tariffs would increase expenses for consumers, decrease semiconductor demand, and adversely impact the markets for electronics, and thus, in a roundabout way, the markets for semiconductors.

TSMC’s Arizona Expansion at Risk

The Taiwanese semiconductor behemoth previously pledged $65 billion to construct three advanced wafer fabs in Arizona. The first plant is running, the second is nearly complete, and the third recently broke ground. In March 2025, TSMC revealed further plans to invest $100 billion towards expanding its footprint which includes:

Three new fabrication plants

Two new packaging and testing facilities

One new research and development center

Collectively these projects are expected to have a production capacity of 100,000 wafers per month which would qualify the site as a ‘GIGAFAB cluster’. TSMC forecasts that the Arizona facility would eventually account for 30% of their global production capacity for advanced 2nm and beyond semiconductor nodes.

Tariffs Could Hurt U.S. Chip Industry and Consumers Alike

TSMC cautioned that the imposed tariffs would completely shatter the US supply chain and make electronics more expensive for consumers. The company urged authorities to exempt semiconductors and downstream goods from any future import controls.

“The company stressed that any remedial import restrictions should not apply to end products and semi-finished products which contain semiconductors.”

Trump’s Tariff Threat Raises Tensions

This comes with comments made by the former president of the United States, Trump, who has declared that he would impose a Tariff of 100% on motherboard semiconductor chips originating from Taiwan. In the opinion of many Taiwanese, he has claimed that the Taiwanese have actually “taken” the chip industry from America which in turns raises alarm bells among international finance and tech industry leaders and investors regarding the prospects of technological advancement in the US.

Read More: TSMC Warns U.S. Tariffs Could Undermine Arizona Investment Plans