Richard Sanders
In a decisive move to maintain its leadership in advanced semiconductor technology, Taiwan’s government has pledged to ensure that cutting-edge chip manufacturing capabilities remain on the island. This commitment follows Taiwan Semiconductor Manufacturing Company’s (TSMC) announcement of a substantial $100 billion investment in expanding its operations in the United States over the next four years.
On Monday, TSMC revealed plans to build three new fabrication plants, two advanced packaging facilities, and a research and development center in the US, in collaboration with US President Donald Trump. This investment is seen as a strategic effort to bolster TSMC’s production capacity while simultaneously strengthening the US semiconductor ecosystem.
Presidential Office spokesperson Karen Kuo confirmed that the government was informed of the investment in advance and expressed its support for TSMC’s overseas ventures. She emphasized that any foreign investments exceeding NT$1.5 billion (about $45.57 million) must receive approval from the central government, and TSMC’s US initiative will be no exception.
Kuo noted that the government is formulating plans to create resilient semiconductor supply chains in partnership with the US and other countries, aligning with Taiwan’s focus on supporting the expanding artificial intelligence industry in democratic nations.
Premier Cho Jung-tai praised TSMC’s investment as a means to enhance Taiwan’s industrial influence and competitiveness on the global stage. “Strengthening Taiwan is a shared goal for both the government and the industry,” he stated.
While encouraging TSMC’s overseas investments, Cho reassured that Taiwan remains committed to maintaining its technological edge. He expressed hope that TSMC’s initiatives would foster mutually beneficial relationships with Taiwan’s allies.
In its statement, TSMC reiterated that its US expansion will not hinder its operations in Taiwan or Japan, nor will it compromise its stable cash dividend policy.
This announcement comes amid rising tensions, with Trump hinting at potential tariffs on semiconductors. He suggested that TSMC’s new investment could help the company avoid such tariffs.
Currently, TSMC is also investing $65 billion in Arizona, where it has begun production at its first fabrication plant using the 4-nanometer process. Plans for subsequent plants featuring even more advanced technologies are underway, with the second expected to start production by 2028 and the third by 2030.
American Institute in Taiwan (AIT) Director Raymond Greene highlighted the significance of the collaboration, stating that it showcases the deep economic ties between the US and Taiwan, particularly in the semiconductor field. He noted that TSMC’s expansion would enhance the prosperity and security of both nations while better serving American clients.
As Taiwan navigates an evolving global semiconductor landscape, its strategic focus on innovation and international partnerships positions it well for continued leadership in the industry.
