04:21 AM EDT, 07/08/2025 (MT Newswires) -- (Updates with Taiwan Semiconductor's response in the fifth and sixth paragraphs.)

Taiwan Semiconductor Manufacturing ( TSM ) is delaying the construction of a second chip plant in Japan as it speeds up investment in the US due to potential tariffs, the Wall Street Journal reported Friday, citing sources familiar with the matter.

The shift reportedly comes as the Trump administration considers tariffs on imported chips and urges major tech firms to bring production to the US.

TSMC's planned Kumamoto plant, part of a $20 billion Japan investment, was initially scheduled to begin construction early this year, but its timing is now uncertain, the WSJ reported.

The company is prioritizing its Arizona facilities, where it has pledged at least $100 billion in new investments, including a third factory announced earlier this year, the news outlet reported.

A company spokesperson said TSMC "does not comment on market rumor," but added that its "global manufacturing expansion strategy is based on customers' needs, business opportunities, operating efficiency, the level of government support and cost economic considerations."

"Our investment plans in the US will not impact our existing investment plans in other regions," the spokesperson said.

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