TSMC

TSMC faces pressure from potential U.S. tariffs and demands for significant investment. The U.S. is considering a 20% tariff on Taiwanese exports, prompting negotiation for a rate closer to South Korea and Japan’s 15%. Reports suggest the U.S. seeks a $300 billion investment from TSMC for a massive Arizona fabrication plant, potentially housing future 2nm and 1.4nm processes. This investment, exceeding 30 times TSMC’s equity, follows a prior $165 billion U.S. expansion commitment. TSMC has declined to comment on the rumors.

A former TSMC employee in the U.S. has aired grievances on Reddit, highlighting a culture clash between TSMC’s Asian corporate practices and American workplace norms. Criticisms include disorganized training in Taiwan, long working hours (14-16 hours daily) in the U.S. fabs, potential biases in hiring practices, and alleged discrimination. The post describes a “toxic” environment with dysfunctional management, leading to high employee turnover. While TSMC offers attractive compensation, cultural differences and demanding work schedules may create a difficult experience for American employees.

Tesla has reportedly signed a $16.5 billion deal with Samsung for AI chip manufacturing, intended for electric vehicles and robotics. The agreement focuses on the AI6 chip, potentially utilizing a 2nm process with production in Austin, Texas, starting in 2025. Despite this, Morgan Stanley analysts believe the deal will only minimally impact TSMC’s revenue, estimating a 1% reduction, as TSMC remains a key supplier for Tesla and xAI. TSMC is set to launch its 3nm A15 chip in 2026, while Samsung’s A16 isn’t expected until 2027.

Infineon Technologies has successfully developed scalable Gallium Nitride (GaN) production on 12-inch wafers, a significant advancement over the current 200mm standard. This technology offers higher power density and efficiency, promising broader applications. The company will begin delivering samples in Q4 2025. Notably, TSMC is exiting the GaN wafer foundry market, leaving Infineon as a key player.

TSMC’s 2nm process has achieved a production yield exceeding 60%, solidifying its leadership in semiconductor manufacturing. This puts them far ahead of Samsung, whose 2nm yield is around 40%. TSMC’s 2nm technology, leveraging GAA, promises significant performance and efficiency gains. Key clients like Apple, NVIDIA, and AMD are expected to adopt it, while Samsung is targeting 2nm production for its Exynos 2600 processor later this year.

TSMC is developing CoPoS, a next-gen chip packaging technology using large panel substrates (up to 310x310mm), expanding upon CoWoS. CoPoS, featuring an interposer for improved signal integrity, is slated for pilot production in 2026, mass production by late 2028/early 2029. It targets high-end applications needing robust power delivery, potentially replacing CoWoS-L, with NVIDIA likely as an early adopter. Interposer materials will move toward glass.

TSMC CEO C.C. Wei, addressing a shareholder meeting, acknowledged the indirect impact of US tariffs. While recognizing potential price and demand fluctuations, Wei remained optimistic about the semiconductor industry, particularly AI chips. He highlighted strong, consistently unmet demand for AI processors and confidently forecast a “very good” outlook for TSMC over the next decade.

TSMC is considering building a cutting-edge chip fabrication plant in the UAE, a significant strategic move for the world’s largest chipmaker. This potential expansion highlights the UAE’s drive to become a global tech leader, particularly in AI. Discussions with UAE officials and US representatives suggest advanced stages of assessment. This move, along with potential investments from other major semiconductor companies, could lead to major shifts in the global semiconductor supply chain, boosting the Middle East’s tech capabilities.

TSMC maintains that its advanced chipmaking roadmap, including the 1.4-nanometer (A14) process, doesn’t currently require High-NA EUV lithography. The company is prioritizing optimizing their existing EUV technology, achieving significant performance improvements using innovative designs like their second-generation nanosheet GAA, delaying the need for the costly high-NA systems. This strategy highlights TSMC’s focus on cost-effectiveness and technological innovation.

TSMC’s limited-edition employee suitcase, made with Bayer’s aerospace-grade Makrolon, has resold for up to NT$500,000 ($16,100) on secondary markets. Distributed as a 2024 internal reward, its lightweight durability and branded design have fueled collector demand. Analysts attribute this to Asia’s luxury resale trends valuing rare corporate memorabilia and TSMC’s strong employer branding amid tech talent competition. Similar frenzy surrounded prior TSMC collectibles like mugs and snacks, reflecting its cult-like status. The phenomenon underscores how workplace incentives inadvertently create high-value commodities, blending engineering prestige with cultural symbolism in Taiwan’s tech circles.