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On May 23, PCMag reported that TSMC has cautioned that the United States' proposed tariffs on foreign-manufactured chips could jeopardize its significant investment of up to $165 billion in semiconductor manufacturing facilities in Arizona. In a submission to the U.S. Department of Commerce, TSMC emphasized that tariffs could diminish demand, undermining the viability of its U.S. operations. The company highlighted that the Arizona fab will eventually comprise 30% of its global capacity for cutting-edge 2-nanometer and more advanced chips, sufficient to meet domestic demand. Furthermore, TSMC confirmed that construction has commenced on a third fab in the state, with initial plans for 2-nanometer chip production, followed by the integration of A16 process technology.
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