Taiwan’s MediaTek Inc. is exploring manufacturing at Taiwan Semiconductor Manufacturing Co.’s Arizona facility, responding to customer demands for domestic production as tariff concerns intensify.
The preliminary discussions would target automotive semiconductors and chips for “sensitive” applications, according to MediaTek Corporate Vice President JC Hsu, Nikkei reported. US customers increasingly prefer localized production and worry about potential semiconductor tariffs, Hsu noted.
MediaTek’s consideration reflects broader industry anxiety about trade policy under the Trump administration. The world’s largest mobile chip developer by shipments has been conducting impact simulations while customers grow wary of supply chain vulnerabilities.
TSMC’s Phoenix facility, which began volume production in late 2024, represents the most advanced chip manufacturing on US soil. The foundry produces 4-nanometer chips primarily for Apple and plans to expand capacity with NT$5.3 trillion ($165 billion) in total Arizona investments.
US production would mark a significant shift for MediaTek, which has traditionally relied on Asian manufacturing to maintain competitive pricing. Domestic production costs are expected to be substantially higher, potentially challenging the cost advantages that have long defined the Taiwanese company’s market strategy.
The talks highlight how geopolitical tensions are forcing semiconductor companies to balance security concerns with economic efficiency, reshaping global supply chains that have underpinned the industry for decades.
