Amid ongoing tariff threats from the Trump administration, anxiety is rising in Taiwan's semiconductor ecosystem, centered around TSMC. Unlike Samsung Electronics and SK hynix, TSMC announced plans for over $100 billion (approximately 137 trillion won) in new investments to respond to tariff policies following the start of the Trump administration. It is reported that not only TSMC but also its manufacturing partners are increasing investments in the U.S., but as Trump's tariff threats persist, dissatisfaction towards this situation is being expressed publicly.
According to industry sources on the 10th, Taiwan's manufacturing sector, including TSMC, is determined to establish strategies for responding to U.S. tariffs. The Taiwan Economic News reported that "the Taiwanese manufacturing sector is concerned that the end of this month will become a '3 Kill Day' due to reduced order volumes from U.S. tariffs, the burden of semiconductor tariffs, and pressure from the strong New Taiwan Dollar." The chairman of Automated Precision Industry, included in TSMC's supply chain ecosystem, stated, "If Taiwan's tax rate exceeds 25%, it will be treated like a slave."
President Trump announced plans to impose reciprocal tariffs starting next month on the 1st. During a Cabinet meeting held at the White House on the 8th, he noted to reporters, "We will announce tariffs on pharmaceuticals, semiconductors, and several other items." Although he did not specify the rates or timing of the tariffs, after the Cabinet meeting, Secretary of Commerce Howard Lutnick stated that an investigation into semiconductors aims to be completed by the end of this month.
In the case of TSMC, the company had announced a large-scale investment plan in line with the launch of the Trump administration. As tariffs are expected to be imposed as scheduled, discontent is being expressed. This is because, even though TSMC made local production facility investments ahead of competitors as per the U.S. government's demands, the burden of tariffs remains the same. The Taiwan Commercial Times reported that "although there are not many products sold directly to the U.S., there is significant stress due to having to waste time establishing strategies to respond to the burdens from the tariff effects and the strength of the Taiwanese dollar."
TSMC plans to significantly expand its production capabilities in the U.S. to respond to tariffs. The total scale of TSMC's investments in the U.S. announced since 2020 is $165 billion (approximately 240 trillion won). Initially, TSMC decided to invest $65 billion (approximately 94 trillion won) to build three plants in Arizona, but following the announcement of U.S. tariff policies, it also revealed plans for an additional investment of $100 billion (approximately 137 trillion won) for production facilities in the U.S.
As tariff imposition was a foreseeable sequence, the domestic semiconductor industry is also preparing response strategies. Samsung Electronics is building a foundry plant in Taylor, Texas, while SK hynix is preparing to construct a semiconductor packaging production base in West Lafayette, Indiana. However, both companies have not announced investment plans related to memory semiconductor production facilities.
An industry source stated, "As Trump's tariff policy carries significant uncertainty, Samsung Electronics and SK hynix will take a different approach from TSMC, which announced large-scale investments right after Trump's inauguration, and will monitor the situation. We need to assess whether building additional memory production bases in the U.S. aligns with our profits. If production capabilities are expanded excessively, losses might exceed the burdens from tariffs, so we will carefully observe the negotiation process."