TSMC forced into US deal by Trump tariff threat

TSMC didn't choose to invest in America for strategic reasons. The company made this move because Trump threatened them with massive tariffs. This became clear during Trump's speech at the National Republican Congressional Committee dinner. He openly stated he pressured the Taiwan chip giant with potential taxes ranging from 25% to 100%. The former president claimed he gave TSMC "no money" despite their $200 billion Arizona investment.

The Taiwan semiconductor leader plans to build four new facilities in Arizona plus research centers. Officials described this as supply chain diversification, suggesting TSMC wanted American operations. Recent comments reveal the company felt forced into this arrangement. Trump apparently believes TSMC "stole US chip technology" and used this as leverage. The expansion benefits America but creates huge challenges in transferring advanced manufacturing processes overseas.

TSMC aims to develop 1.6nm chip technology before 2030, which appears positive for American tech goals. However, the partnership started under pressure rather than mutual interest. Many business experts consider Trump's supply chain policies extreme and harmful to companies. The administration even placed tariffs on Taiwan despite working with TSMC, showing their unpredictable nature. Such actions make long-term planning difficult for international businesses dealing with America.
 

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