Taiwan’s President and TSMC CEO Address Investment Concerns.

(Bloomberg) — Taiwan Semiconductor Manufacturing Co. (TSMC) is making headlines as its Chief Executive Officer, C.C. Wei, reassures the Taiwanese public regarding the company’s substantial $100 billion investment in the United States. During a joint briefing with Taiwan’s President Lai Ching-te, Wei emphasized that this investment will not detract from TSMC’s commitment to its home base in Taiwan.

Commitment to Taiwan’s Technology Development

Wei stated, “We are increasing investments in the US as demand from US customers is very large.” He highlighted that TSMC’s current capacity in the US is fully booked, extending into 2027, which underscores the immense demand for semiconductor production. Despite this expansion, Wei confirmed that TSMC’s plans to build 11 production lines in Taiwan this year remain unchanged. He also requested President Lai’s support in securing additional land for future projects.

Addressing Public Concerns

The briefing was convened in response to growing concerns among the Taiwanese public about TSMC’s shifting priorities towards the West. This comes shortly after the announcement of the company’s plans to invest another $100 billion in its US facilities, a move that aligns with former President Donald Trump’s push for increased domestic manufacturing.

Wei aimed to quell speculation regarding the potential relocation of TSMC’s critical research unit to the US, asserting that the company currently employs 10,000 engineers in Taiwan dedicated to developing next-generation technology. The new research and development team in Arizona will focus on optimizing existing production lines rather than transferring key operations.

Significant US Investment Plans

TSMC’s investment in the US is poised to be one of the largest by a foreign firm in American manufacturing. This latest pledge adds to the previously announced $65 billion investment, which will establish a total of six advanced wafer fabrication plants and additional facilities for advanced packaging in the US.

However, any further investment by TSMC in the US will require approval from the Taiwanese government. Economic Minister Kuo Jyh-Huei downplayed fears that the expanded investment plans would lead to an Americanization of the chipmaker. He stated, “TSMC already has plants in the US and Japan, and it’s now building a new plant in Germany. These have nothing to do with tariffs. TSMC’s global expansion is a crucial development.”

Impact of US Tariffs on Taiwan’s Semiconductor Industry

The announcement of TSMC’s new US investment comes at a time when tariffs on various industries, including semiconductors, are being considered by the US government to address perceived trade imbalances. Such tariffs could significantly impact Taiwan, which is home to the majority of the world’s advanced wafers, particularly those utilized in artificial intelligence applications.

Following the investment announcement, Nvidia expressed its reliance on TSMC’s new plants to establish a resilient technology supply chain within the US. The ongoing dialogue surrounding tariffs and trade policies continues to shape the semiconductor landscape, making TSMC’s strategic decisions critical for both Taiwan and the global market.

Conclusion: A Balanced Approach to Global Expansion

As TSMC navigates its ambitious expansion plans, the company’s commitment to maintaining a strong presence in Taiwan remains evident. The joint briefing with President Lai serves as a reminder of the delicate balance between global expansion and local investment, ensuring that Taiwan’s semiconductor industry continues to thrive.

For more details, visit the original article.