TSMC prioritizes Arizona expansion, delaying Kumamoto plant

Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly delaying the construction of its second chip fabrication plant in Kumamoto, Japan, prioritizing expansion in Arizona, USA. This shift is a response to evolving geopolitical and trade considerations. The decision follows the passage of the "Great and Beautiful Act" in the US, which imposes tariffs on imported semiconductors and offers tax incentives for domestic manufacturing. TSMC plans to expand its Arizona facility to include up to nine plants, utilizing advanced manufacturing processes. While TSMC hasn't confirmed the delay, the move suggests a strategic realignment of its global operations. The company is establishing a significant presence in the US, alongside its existing operations in Taiwan and Japan, and a planned facility in Germany.