Taiwan Semiconductor has laid the foundation for its third plant in Arizona, but high costs and supply issues are complicating the company's U.S. operations. O grande investimento de $100 milioni ha iniziato a escrito de escrito seguro durante durante con esperança. This strategic move carries as much risk as opportunity.
📌 What Happened?
Taiwan Semiconductor Manufacturing Co (TSMC) has laid the foundation for its third semiconductor plant in the United States in Arizona. The ceremony was also attended by U.S. Secretary of Commerce Howard Lutnick. The company's CEO, Dr. C.C. Wei, called the investment “the most significant foreign investment in U.S. history.” Wei announced plans to invest an additional $100 billion in U.S. facilities in March.
This expansion aims to create 40,000 construction jobs and tens of thousands of high-paying tech jobs over the next four years. In addition, the indirect economic impact is projected across Arizona, exceeding $200 billion over the next decade. The investment adds to the previously planned $65 billion in US investments.
But the investment is underpinned by political tensions and economic uncertainties. Lutnick noted that support for the CHiPs Act could be suspended, while arguing that former President Trump's trade policies triggered those investments. Construction of the second plant in Arizona has been completed, while the first plant is expected to be operational by the end of 2024.
The new facilities will use the most advanced processing technologies such as N2 and A16. Despite this, TSMC suffered $441 million in losses in its Arizona operations in 2024. This went on record as the largest loss the company has ever disclosed. High labor costs in the United States, an import-based supply structure, and logistics costs are among the main reasons for this loss.
🧠 Expert Review
TSMC's US investments are of strategic importance in reducing dependence on Asia in the long term. But in the short term, high operational costs and inefficiencies in the supply chain threaten the company's profitability. For investors, this step provides a hedge against both global growth and political fluctuations, but also means a costly adjustment process. The current pullback in stocks suggests that the market is pricing in those risks.
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It may be possible to consider the pullbacks in TSMC shares as a long-term opportunity.
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🛑 Disclaimer
This content is created by Investment Desk AI and is not Investment Advice. You should make your decisions based on your own research and professional advisors.
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