A analysis suggests that the operations of production bases being constructed by TSMC, the world's largest foundry (semiconductor contract manufacturing) company, in Japan and Germany may be delayed. Amid ongoing tariff threats from the United States, TSMC is focusing on ramping up production and expansion of its Arizona fab, where demand from major U.S. corporations is concentrated in advanced processes. Although TSMC has stated that it will accelerate the timeline for the operation and expansion plans of its advanced process at the Arizona fab, it avoided specific mention of the mass production schedule for Japan and Germany.
According to TSMC on the 18th, the company has completed the construction of the Arizona plant 2, which uses a 3nm (nanometer; 1 billionth of a meter) process, and plans to accelerate the mass production schedule by 2 to 3 quarters compared to initial plans to meet customer demand. During the second-quarter earnings conference call, TSMC Chief Executive Officer (CEO) Wade Sherin noted, "The construction of the Arizona plant 3, which will operate 2nm and A16 (1.6-node) processes, has already begun," adding, "We will also bring forward the production schedule of the facility."
TSMC has announced plans to invest a total of $165 billion (about 230 trillion won) to build semiconductor factories in Arizona. Last year, TSMC started mass production of 4nm processes through the Arizona fab, and plans to sequentially mass-produce 3nm, 2nm, and 1nm processes through the completed fabs. TSMC aims to establish a total of six advanced process production lines, two packaging process lines, and one research and development center. If TSMC's Arizona fab is completed, it is expected to mass-produce 30% of the 2nm advanced processes through the Arizona fab.
TSMC has also announced significant investments in Japan and Germany, but it did not mention specific operational plans during this earnings conference call, unlike the schedule for the Arizona fab. TSMC is building a production base in Kumamoto Prefecture, Japan, with a total investment of $20 billion (about 27 trillion won). The Japanese government is providing TSMC with subsidies amounting to 1.2 trillion yen (about 1.07 trillion won). In Dresden, Germany, TSMC is constructing Europe's first semiconductor production plant with an investment of €10 billion (about 14.7 trillion won). Similarly, the German government plans to provide TSMC with subsidies worth €5 billion.
TSMC has stated that there will be no changes to the operational schedules of the production bases in Japan and Germany, but there are projections that they may be delayed contrary to expectations. Market research firm TrendForce noted, "While the operational schedule of the Arizona fab has been clearly presented, the project timelines in Japan and Germany remain unclear," adding, "The mass production and expansion schedules will vary significantly based on customer demand and market conditions."
TSMC announced plans for additional investments amounting to $100 billion (about 140 trillion won) following the inauguration of the Trump administration, but the tariff threats from the United States have not subsided.
An industry official remarked, "TSMC is accelerating the operation of the Arizona fab, deploying a considerable number of existing engineers responsible for advanced processes there," adding that this is a measure to quickly resolve uncertainties regarding tariffs and respond to the demands of big tech clients.