TSMC has reportedly sent a letter of complaint that its Arizona fab might face operational disruptions due to the United States' tariff policy. Once the tariff takes effect, an increase in TSMC's processing expenses is unavoidable, and the demand from U.S. clients is expected to slow down, potentially affecting the schedule for the Arizona plant construction, which is being pursued at a cost of over 100 trillion won. It has been understood that U.S. server corporations, including Dell and HPE, have also conveyed similar positions to TSMC.
According to Taiwanese media on the 23rd, TSMC's Arizona corporation conveyed the company's stance regarding tariffs to the U.S. side. Although specific details were not disclosed, the Taiwanese Economic Daily reported that TSMC sent a letter stating, "Tariffs can increase the prices of end consumer products, reducing demand for those products and the semiconductor components included, and can create uncertainty in the construction and operation schedule of the Arizona wafer factory," adding, "We urge the U.S. government not to impose tariffs or other restrictions on semiconductors produced outside the U.S."
The total amount TSMC has announced for its investment in the U.S. since 2020 is $165 billion (approximately 241 trillion won). Initially, TSMC decided to invest $65 billion (approximately 94 trillion won) to construct three factories in Arizona, but after the announcement of the U.S. tariff policy, it revealed plans for an additional investment of $100 billion (approximately 145 trillion won) in production facilities in the U.S.
TSMC has faced challenges in improving profitability, recording a cumulative loss of NT$39.452 billion (approximately 1.7248 trillion won) over the past four years at its Arizona fab, and appears to have strongly expressed its position as the burden of tariffs increases. An industry insider noted, "TSMC, which has major clients including NVIDIA, Apple, Qualcomm, and AMD, is responding to tariffs more quickly than anyone else to increase its production capacity in the U.S. However, the issue is that most processes are still produced in Taiwan, so it seems to have conveyed this position to minimize the burden due to tariffs."
It has been understood that Dell, HPE, and others have also conveyed negative opinions regarding the U.S. tariff policy. The TSMC Arizona fab is expected to take some time to complete, and its production capacity is currently limited to the extent that it will not be able to accept additional orders until 2027. They have no choice but to supplement the insufficient production capacity at local production bases in Taiwan, but if high tariffs are implemented, tariffs will be imposed on the quantities produced in Taiwan, leading to increased processing expenses and ultimately causing harm to U.S. corporations.
The Economic Daily reported, "By the end of 2027, orders are expected to surge, and the production capacity of the Arizona factory has already reached its limit, and current production capacity is still insufficient to meet customer demand."
Dell reportedly stated, "The infrastructure to meet customer demand is severely lacking." HPE mentioned, "We have no choice but to import semiconductors to supply U.S. manufacturers. Imposing tariffs on imported semiconductors will hinder HPE's ability to maintain and expand domestic manufacturing activities," adding, "This will slow down research and development and innovation in the U.S., ultimately negatively impacting national security and economic growth."