TSMC’s Arizona plant, because of note in U.S. semiconductor history, recently saw its opening pushed back to January from December. This change fits in with the upcoming presidential inauguration and likely targets TSMC’s image at the incoming Trump administration.
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TSMC’s Arizona Facility Opening Delayed to January 2025 as Taiwan Giant Prepares for ‘Trump Era
The delay highlights how TSMC’s U.S. plans are being influenced by the political landscape, particularly as Donald Trump is poised to return to office. According to Digitimes, TSMC decided to postpone the opening because it could facilitate matters dealing with Trump’s administration after he takes office. The broader plan of reducing dependence on geopolitical rivals particularly China and making the U.S.-based chip production mighty has involved TSMC venturing into the U.S. as well.
Arizona fab materialized because of the CHIPS Act — a Biden-era legislative push to revitalize on-shore semiconductor production. Whether or not the CHIPS Act actually helps is still up for debate but it has certainly turned the heads of the world’s largest supplier of semiconductors, TSMC. The regional conflicts are less of the U.S. in moving into more self-sufficient chips with TSMC’s U.S. expansion signalling a larger pushback towards avoiding these areas.
But the game would get even tougher on TSMC, under a Trump administration. Trump has previously indicated that costs for U.S. facilities are to be borne by Taiwanese firms, and many question whether new taxes or new regulations would come into play. Nonetheless, TSMC is a key player in U.S. dreams of semiconductors as local giants including Intel have failed to deliver on promises. Tensions are also rising between the U.S. and Taiwan regarding semiconductor collaboration. Taiwan’s government has recently stated that it will not allow advanced technologies, such as 2nm nodes, to be developed outside of Taiwan. This shift could force TSMC to tread carefully with the new administration.
FAQs
Why was TSMC’s Arizona facility opening delayed?
The opening was delayed to January 2025 to align with the incoming Trump administration.
What is the significance of TSMC’s Arizona facility?
It is part of TSMC’s strategy to expand U.S. semiconductor production.
