TSMC Cautions Tariffs Could Undermine U.S. Chip Production Plans

May 23, 2025
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Summary

Taiwan's TSMC, the world's biggest chipmaker, warns tariffs on microchips and manufacturing equipment could undermine its plans to expand chip production in the United States, as semiconductor supply chains are global and import restrictions could reduce demand for U.S.-made chips.

Key Points

  • TSMC warns tariffs on microchips and manufacturing equipment could backfire against plans to make more computer chips in the United States
  • TSMC says semiconductor products are 'extremely complex' and require global supply chains, so import restrictions like tariffs could reduce demand and hinder market demand for U.S.-made chips
  • TSMC urges 'pro-growth' policies like expanding tax credits for semiconductor investments to bolster U.S. production instead of tariffs

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