The U.S. Commerce Department has asked the public for comments on its plan to apply tariffs on semiconductors arriving on U.S. shores, and several tech companies responded with written protests. According to PC Mag, Taiwan Semiconductor Manufacturing Company (TSMC) has one of the more strongly worded responses, warning that applying import duties on chips will significantly reduce the demand for its customers' electronic products. This would lead to a massive decline in revenue, which would affect the timeline of its $165 billion investment in Arizona.
“Lower market demand for our leading U.S. customers’ products may consequently reduce demand for TSMC’s manufacturing capacity and service onshore,” the company said in its response. It also added, “Diminished demand could create uncertainty around the timeline for the construction and operation of our Arizona fabs. It could also undermine TSMC’s financial capacity to timely execute its ambitious Arizona project.”
