Senior Taiwanese Official: "U.S. Semiconductor Tariffs Have Little Impact on TSMC"

Direct Exports of Taiwanese Semiconductor Components Account for Only 1%
Negotiations Underway with State Governments to Reduce Tax Burdens

Taiwanese media, including China Times, reported on the 27th that a senior Taiwanese official stated that the semiconductor tariffs imposed by the Donald Trump administration in the United States would have little impact on Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest foundry (semiconductor contract manufacturing) company.

Liu Jing-ching, Minister of Taiwan's National Development Council (NDC), which is the largest shareholder of TSMC, made these remarks in an interview with Nikkei Asia on the 25th.

Reuters Yonhap News

Minister Liu explained that TSMC is currently making direct investments in the United States, and that the proportion of Taiwan's direct exports of semiconductor components is only 1 percent, so the impact of semiconductor tariffs is expected to be limited. He stated that, as a result, even if the Trump administration imposes tariffs on semiconductors, there would be little effect on TSMC's operations.

Minister Liu also revealed that negotiations are underway with state governments such as Texas and Arizona, where Taiwanese companies have entered, to reduce tax burdens. He added that when Taiwanese companies build factories in the United States in the future, they expect support from local U.S. governments.

In March, TSMC announced plans to invest an additional 100 billion dollars to expand factories and increase production in the United States. In April, the company began construction on its third U.S. plant in Arizona. Minister Liu stated that this business deployment gives TSMC greater flexibility in responding to U.S. policies.

Recently, an employee of the Taiwanese subsidiary of Tokyo Electron (TEL), a Japanese semiconductor equipment manufacturer, leaked TSMC's cutting-edge process technology. Minister Liu stated that TSMC will take appropriate measures based on the results of the investigation. He added that Taiwanese companies and Japanese semiconductor equipment manufacturers have a deep relationship, and this incident will not affect the relationship between the two sides.