TSMC has just announced an additional investment of $100 billion in the US over the next four years, in addition to the $65 billion previously committed to build three semiconductor factories in Arizona.

According to the Korea Times , Korean companies are being forced to choose between “making in America” or “paying the price” as TSMC’s decision reinforces President Donald Trump’s belief that tariffs are more effective than subsidies in attracting foreign investment.

7lapq76z.png
Samsung Electronics' semiconductor plant under construction in Taylor, Texas, on February 14. Photo: Samsung Electronics

“Now, you’re seeing the power of the Trump presidency because TSMC – the world’s greatest chipmaker – is coming to the United States with $100 billion,” US Commerce Secretary Howard Lutnick said at a White House press conference on March 3. “And of course, they’re actually coming here to not pay tariffs.”

Mr. Trump even linked TSMC's investment plans to national security.

The US President threatened to impose a 25% tariff on imported semiconductors and reduce subsidies for companies operating domestically.

Mr Trump appears to be trying to block Samsung and SK Hynix from receiving the planned funding unless they invest more in the US, according to an industry official.

Last month, SK Group Chairman Chey Tae Won called on Washington to offer greater incentives to South Korean companies considering additional investments there.

In addition, both Samsung and SK are in a dilemma over whether to move their manufacturing plants to Mexico and Canada, as the US decided to impose a 25% tax on all imported goods from the two neighboring countries from March 4.

Samsung is reportedly considering manufacturing washers and dryers in South Carolina, USA, instead of Queretaro, Mexico. SK On, SK’s battery unit, is building a factory in Quebec, Canada, with partner EcoPro.

Overall, given the current situation, Korean companies are having difficulty making business decisions in North America.

(According to Korea Times)