What will be the consequences if TSMC does not build a factory in the United States? There is no way to escape being taxed 100%. U.S. President Trump revealed at a Republican National Committee event on April 8, local time, that he had threatened TSMC that it would pay up to 100% tax if it did not build a factory in the United States.

Taiwan Semiconductor Manufacturing Co. may face a fine of $1 billion or more to resolve a U.S. export control investigation into a chip produced by the company, two people familiar with the matter said.

Previously, Peter Cleveland, senior vice president of TSMC, said in the United States that the company's second advanced process wafer fab, the company's U.S. subsidiary TSMCArizona, is under construction, and TSMC's attitude toward the third wafer fab is that it hopes to start construction as soon as possible, which requires the U.S. government's cooperation in the environmental impact assessment certification process.

According to the official U.S. "Chip and Science Act" related webpage, TSMCArizona's second wafer fab will provide 3nm FinFE process production capacity and is expected to be put into production in 2028; while the third wafer fab will go deep into the 2nm and A16 Nanosheet (GAA) processes and is expected to be put into production by the end of this decade.

Prior to this, chip foundry giant TSMC planned to invest an additional US$100 billion in U.S. factories to increase its chip production capacity in the United States and support President Trump's goal of strengthening domestic manufacturing.

Wei Zhejia said that this investment will be added to the planned investment of US$65 billion and will create thousands of jobs.