TSMC to Delay Japan Chip Plant and Prioritize U.S. to Avoid Trump Tariffs

[XYang2023]

TOKYO—Taiwan Semiconductor Manufacturing is delaying construction of a second plant in Japan partly because it is pouring funds more quickly into U.S. expansion ahead of potential Trump administration tariffs, people familiar with the plans said.

The revised schedule is the latest example of how President Trump’s aggressive stance on trade is pulling some investment toward the U.S. at the expense of allies. Major technology companies have committed to expand U.S. production of artificial-intelligence servers that are currently made in places such as Mexico and Taiwan.

https://www.wsj.com/tech/tsmc-to-delay-japan-chip-plant-and-prioritize-u-s-to-avoid-trump-tariffs-f623c07e

 

[benb]

Tariffs are coming for TSMC Taiwan

 

[dkr1986]

Tariffs are coming for TSMC Taiwan

The tariffs should be punitive enough to push the US fabless semi companies to diversify their supply chains with Intel (Samsung unfortunately delayed their Taylor fab). So TSMC has a 20-25k wspm of N4 available now with fab 1, assuming fab 2 brings another 20-25k wspm of N3 in 2027, fabless will have to eat the cost or work with alternatives.

 

[Daniel Nenni]

Tariffs are coming for TSMC Taiwan

TSMC is an exporter. Tariffs are for importers. TSMC's clients will pass tariffs onto the customers. Since there are no TSMC alternatives this will not hurt TSMC. TSMC even got further tax credits from the Big Beautiful US tax bill. TSMC is winning, the US customer is losing. I'm sure Jensen is bowing down to the Tariff gods right now.

 

[benb]

TSMC is an exporter. Tariffs are for importers. TSMC's clients will pass tariffs onto the customers. Since there are no TSMC alternatives this will not hurt TSMC. TSMC even got further tax credits from the Big Beautiful US tax bill. TSMC is winning, the US customer is losing. I'm sure Jensen is bowing down to the Tariff gods right now.

TSMC Arizona is productive and competitive, with just a 10% cost difference.

Producing wafers at TSMC Arizona is only 10% more expensive than in Taiwan: TechInsights

It is equipment, not labor that defines chipmaking costs.

www.tomshardware.com

I think we'll see F21 P1 expand production a lot if tariffs increase, and F21 P2 may arrive sooner than expected. That only covers up to 3nm. What about AMD Zen 6 (on 2nm) or future Apple desktop processors (M5?)

Samsung Taylor could potentially be ready for 2nm nodes sooner than TSMC Arizona. Intel will need a bit of time to build out their Columbus fab for 14A. I'm also not sure how Intel could pull that off in the financial condition they are in.

 

[siliconbruh999]

TSMC Arizona is productive and competitive, with just a 10% cost difference.

Producing wafers at TSMC Arizona is only 10% more expensive than in Taiwan: TechInsights

It is equipment, not labor that defines chipmaking costs.

www.tomshardware.com

I think we'll see F21 P1 expand production a lot if tariffs increase, and F21 P2 may arrive sooner than expected. That only covers up to 3nm. What about AMD Zen 6 (on 2nm) or future Apple desktop processors (M5?)

Samsung Taylor could potentially be ready for 2nm nodes sooner than TSMC Arizona. Intel will need a bit of time to build out their Columbus fab for 14A. I'm also not sure how Intel could pull that off in the financial condition they are in.

If 14A is not high Na than they can do it in Arizona

 

[MKWVentures]

If you do not like the tariffs, then just wait a week, they will change.

Question: what is the exact on a chip fab'd in taiwan, packaged in Malaysia, put on a motherboard in China, final server assembly in Mexico. Server is shipped to US.
If the tariff is too high, I will just move the server farm to Canada. I am good either way.

FYI: the 35% ITC is how you change the manufacturing landscape for Fabs. whether you like the bill or not, that how to get manufacturing in the US. If you don't want fabs here, just cancel the ITC program.