Taiwan Semiconductor plans to postpone the construction of its chip factory in Japan and prioritize investments in the United States

Due to concerns over Trump's tariff threats, Taiwan Semiconductor Manufacturing Company (TSMC) has postponed its factory construction in Japan.

On Friday, media reports citing informed sources stated that due to worries about the Trump administration imposing tariffs on imported chips, TSMC has decided to prioritize investment in expanding its U.S. facilities and has delayed plans to build a second factory in Kumamoto, Japan.

According to previous reports from CCTV News, the U.S. plans to reinstate tariffs on semiconductor imports. Analysts pointed out that TSMC has always been known for its cautious capital expenditures, fearing the construction of capacity that exceeds market demand globally. Under Trump's threats, TSMC's current priority is to ensure production capacity in the U.S.

Concerned about tariff risks, TSMC prioritizes U.S. production lines

TSMC announced early last year that it would build a second factory in Kumamoto Prefecture, southern Japan, as part of its $20 billion investment plan in Japan, which has received over $8 billion in commitments from the Japanese government.

TSMC's first factory in Japan began production last fall, supplying clients such as Toyota. The second factory was originally scheduled to start construction at the beginning of this year, but TSMC Chairman C.C. Wei stated in June that there would be "some delays" due to heavy local traffic in Japan.

Informed sources revealed that the start date for the second factory in Japan is expected to be further delayed, and it is currently impossible to predict accurately.

Analysts say this delay is a blow to Japan, as the Japanese economy has already begun to feel the impact of Trump's 25% tariffs on imported cars and steel. Tokyo had hoped to reach a trade agreement with the U.S. soon, but negotiations have stalled, and Trump recently criticized Japan for being "unwilling to open its market."

TSMC's global expansion plans are still ongoing. In addition to the Japan project, TSMC has already begun construction on its first European factory in Germany at the end of last year, which is expected to start production by the end of 2027.

In the U.S., TSMC's investment scale is even larger. In March, Chairman C.C. Wei appeared alongside Trump at the White House, announcing plans to invest at least $100 billion in the U.S. over the next few years, in addition to the previously announced $65 billion investment.

In April, U.S. Secretary of Commerce Gina Raimondo also visited Arizona to attend the groundbreaking ceremony for TSMC's third chip factory in the Phoenix area. TSMC's factory in Arizona is the only planned facility outside Taiwan to produce the most advanced process chips, exclusively for U.S. tech giants like Apple, NVIDIA, and AMD