Taiwan Semiconductor Manufacturing Co (TSMC) has been dubbed Taiwan’s “sacred mountain.” In the past few years, it has invested in the construction of fabs in the US, Japan and Europe, and has long been a world-leading super enterprise — a source of pride for Taiwanese.
However, many erroneous news reports, some part of cognitive warfare campaigns, have appeared online, intentionally spreading the false idea that TSMC is not really a Taiwanese company.
It is true that TSMC depositary receipts can be purchased on the US securities market, and the proportion of foreign investment in the company is high. However, this reflects the high recognition TSMC has earned from investors around the world.
That is the key behind TSMC’s status as “sacred mountain.” Out of concern for their investments and to protect their own vested interests, global investors care deeply about Taiwan’s interests.
Everyone should have the basic understanding that TSMC is a tried-and-true Taiwanese company. Its core talent, technology, management and operations all rest in the hands of Taiwanese. TSMC has 100 percent ownership and complete control over its US investments.
It owns 86.5 percent of the shares of its Japanese fab, known as Japan Advanced Semiconductor Manufacturing Inc, and holds absolute control of the enterprise.
In Germany, TSMC owns 70 percent of European Semiconductor Co and similarly retains complete control.
The talent forming the backbone of its fabs — whether in the US, Japan or Europe — is made up of Taiwanese. The overseas fabs are genuine Taiwanese companies, and to view them as extensions of Taiwan’s “sacred mountain” is accurate.
Falsely accusing TSMC of hollowing out Taiwan’s resources is nothing more than a malicious rumor meant to undermine Taiwan.
While TSMC has constructed fabs overseas, most of its chips are still produced in Taiwan. Despite a series of overseas expansion plans, Taiwan’s domestic production capacity still accounts for 80 to 90 percent of its total capacity.
TSMC’s most profitable 3-nanometer manufacturing process is used in production facilities in Tainan’s Southern Taiwan Science Park (南部科學園區). For the next-most advanced chips — made with the 2-nanometer production process — fabs are being constructed in Kaohsiung and Hsinchu.
TSMC’s fundamental research and development facilities are in its Hsinchu facility, the world’s strongest research and development center. TSMC’s complete semiconductor supply chain is located throughout Taiwan, and it is irreplaceable.
China has its eyes on Taiwan, and maintaining peace and stability in the Taiwan Strait requires a global effort. That TSMC has attracted capital from around the world shows that many global investors place great importance on Taiwan’s national security.
The successful establishment of TSMC fabs in the US, Japan and Europe also represents the gradually increasing strength of Taiwan’s influence on these countries and regions. In the world of semiconductors, Taiwan, the US, Japan and Europe have become a common entity with a shared fate. It is only natural that TSMC has become Taiwan’s “sacred mountain,” safeguarding the nation.
Wang Chih-chien is a distinguished professor at National Taipei University’s Graduate Institute of Information Management.
Translated by Kyra Gustavsen
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