Chipmaker TSMC’s US-investment vow shows Asia a way around tariffs

The announcement that Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, will invest an additional US$100 billion in the United States – and avoid harmful tariffs – could inspire other major Asian firms to follow its lead and those of South Korean giants by making moves that could isolate mainland China, analysts said on Tuesday.

US President Donald Trump on Monday announced the TSMC investment in three new chip-fabrication plants, two packaging facilities, and a research and development centre, potentially adding 20,000 to 25,000 jobs in the US state of Arizona.