Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading chipmaker, has issued a stark warning to US officials: ongoing tariffs could jeopardize its $165 billion investment plan in Arizona. The project, which includes six semiconductor factories and supporting facilities, promises to generate $200 billion in economic growth but now faces uncertainty due to trade policy disputes.
The development highlights a growing trend. Major Asian-led investments, including Softbank's $1.9 trillion vision with partners like Apple, appear increasingly unstable. Analysts suggest protectionist measures are backfiring, with the US auto sector already seeing 20% job cuts this year despite initial promises of manufacturing revival.
European automaker Stellantis exemplifies the challenges, having suspended operations in North America and laid off 900 workers. 'Tariffs designed to boost domestic production are instead creating investment paralysis,' said He Weiwen, a senior fellow at the Center for China and Globalization. 'Global firms are reassessing the risks of concentrated US investments.'
The situation presents both challenges and opportunities for Asian economies. While supply chain disruptions may affect tech sectors, some analysts predict accelerated investment diversification across Southeast Asia and the Chinese mainland as companies seek stable trade environments.
