TSMC has postponed the inauguration of its Arizona plant, originally planned for early December, to January or February, aligning with the inauguration of incoming U.S. President Trump. This strategic delay reflects TSMC's cautious approach amidst potential policy changes under Trump's administration.
Previously, there were speculations about the plant opening before the year-end, with invitations extended to current U.S. President Biden and Arizona's governor. However, with the ceremony delayed until after Trump's inauguration, the attendance of Biden and his officials has become unlikely. The exact date of the opening remains contingent on Trump's assumption of office.
This move by TSMC demonstrates its prudence, considering Trump's past stance on the overseas semiconductor industry and the CHIPS Act. TSMC is wary of potentially stringent policies that might demand stronger commitments to U.S. operations and could lead to reductions in incentives and loans.
Despite uncertainties, TSMC's leading position in advanced chip manufacturing and its strong capital base reassure its continued U.S. business success. The company has already secured $6.6 billion in U.S. government subsidies and $5 billion in loans, with prospects of a 25% investment tax credit. These funds will support the Arizona plant's development phases, with the first phase aimed at producing processors using TSMC's 4nm/5nm technology for Apple, expected to commence production in 2025.
The second phase, nearing completion, targets 3nm or 2nm chip production by 2027-2028, while the third phase is planned for completion by the end of the century or early next decade. TSMC anticipates investing approximately $65 billion across these three phases.
Industry analysts suggest that Trump's presidency may accelerate the reshoring of manufacturing to the U.S., prompting semiconductor packaging and equipment firms to relocate operations. TSMC's Arizona facility is seen as a guidepost for the chip industry, with companies eyeing Texas as a strategic location for expanding their U.S. market supply chain.
