Right now, the biggest chipmaker in the world is facing massive tariffs in the US. The G5 will be Google's first Tensor chip made by TSMC President Donald Trump promised tariffs of up to 100% on Taiwan’s export of microchips to the US.
TSMC manufactures more than 90% of the world’s most advanced logic chips, making it the world leader in semiconductor manufacturing. Back in 2020, it announced the creation of TSMC Arizona and an initial $12 billion commitment to building its first U.S.-located advanced fabrication plant in Phoenix.
TSMC's new U.S. plant is unlikely to get the most advanced chip technology before factories in Taiwan due to complex compliance issues, local construction regulations and various permitting requirements,
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TSMC's Arizona Fab 21 began 4nm chip mass production in Q4 2024. Costs are higher than in Taiwan; 2nm production starts in 2025, with 3nm expansion ongoing.
Taiwan Semiconductor Manufacturing confirmed it started commercial production at its Phoenix complex during fourth quarter when profits surged 57%.
Apple’s chip production partnership with TSMC will likely take a financial hit from President Donald Trump’s proposed tariffs. Trump says he will place import taxes on semiconductors and other specific imports in the near future.
Major tech firms may have to remain dependent on Taiwan-based plants, increasing their exposure to geopolitical risks.
TSMC has been promised $6.6 billion under the Biden-administration’s CHIPS and Science ACT to help build three cutting-edge chip fabrication plants in Arizona.
Macworld Are you saving up for a new Mac, iPhone, or iPad this year? You might need to save more money than you were planning, especially if you live in the U.S. That’s if President Trump’s plan to impose tariffs on computer chips goes into effect.
Will proposed tariffs up to 100% on semiconductors made in Taiwan incentivize investment in U.S. capacity or dramatically raise prices?