Taiwan government declines comment on TSMC Arizona expansion

The Taiwanese Cabinet declined to comment on a report that the US may lower tariffs on Taiwanese goods in exchange for more investment from Taiwan Semiconductor Manufacturing Co. (TSMC).

The New York Times reported that the US could reduce tariffs to 15%, matching rates given to Japan and South Korea, if TSMC builds at least five additional chip fabrication plants in Arizona.

TSMC, a major chipmaker headquartered in Taiwan, currently has three fabs at different stages of construction in Arizona as part of a US$65 billion commitment.

Cabinet spokesperson Michelle Lee said both governments have reached a broad consensus on related issues, and are still discussing the timing of a final meeting.

The US is also investigating whether to impose “national security tariffs” on semiconductors under Section 232 of the Trade Expansion Act.

TSMC did not comment, but is expected to address the topic during its upcoming investor conference.

🔗 Source: Focus Taiwan

🧠 Food for thought

Implications, context, and why it matters.

US chip tariffs on Taiwan may already be near zero, so a 15% cut could mislead

Many semiconductor products under Harmonized Tariff Schedule (HTS) code 8542 (electronic integrated circuits) enter the US duty-free under the World Trade Organization’s Information Technology Agreement (ITA), so a reported 15% tariff could be an increase and not a cut 1.
Unclear baseline rates for the chip categories muddy whether Taiwan gains or the current state holds, while a separate Section 232 national security probe could add new tariffs 2 3.
The US Department of Commerce (Commerce Department) opened a Section 232 review (an authority that lets the government assess whether imports threaten national security) on April 1, 2025 and can recommend tariffs or quotas within 270 days 2 4.

Trade compliance firms have a short window to help chip importers plan

The May 7, 2025 comment deadline has passed. A final report is due within 270 days, so providers can help importers prepare for tariffs or quotas or export controls 2 4.
Importers of chips or semiconductor manufacturing equipment or finished electronics can request tariff classification reviews to confirm HTS codes 2. They can also order supply chain risk checks and mitigation plans before new limits arrive 2.
This probe spans legacy chips (older process nodes) and leading-edge chips (advanced nodes). It also covers bare wafers (unprocessed silicon disks used to make chips) and derivative products. This scope fuels demand for tariff engineering, or lawful tweaks to design, sourcing, or routing that cut duty exposure 2.