Will TSMC escape tariffs with pledge for $100B in U.S. chip manufacturing plants?

Taiwan has allegedly avoided tariffs on its chips by announcing plans to invest $100 bnin t o b u i l d in g c hi p man u f a c t u r in g pl an t s in t h e U S o v er t h e n e x t f o u rye a rs, w i t hi t s bi gg es t c hi p mak er, T ai w an S e mi co n d u c t or M an u f a c t u r in g C o (TSMC) a l re a d y b u i l d in g n e w f a c t or i es in A r i zo naba se d o na$ 65bn pledge.
The $100bn investment will go towards the construction of more factories in Arizona that will produce AI chips, however, there are concerns that the US no longer has the engineering talent needed as much production has moved offshore.
“I believe that TSMC was faced with 50-100% tariffs and had to make a choice between that and making increased US investments,” said Patrick Moorhead, an analyst at Moor Insights & Strategy.
Intel has also received more than $2bn via the Chips and Science Act and has pledged to invest heavily in US manufacturing, but it has struggled to compete with TSMC in recent years.

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