Taiwanese chip-making giant Taiwan Semiconductor Manufacturing Co (TSMC) plans to invest a whopping US$100 billion in the US, after US President Donald Trump threatened to slap tariffs on overseas-made chips.
TSMC is the world’s biggest maker of the critical technology that has become the lifeblood of the global economy.
This week’s announcement takes the total amount TSMC has pledged to invest in the US to US$165 billion, which the company says is the “largest single foreign direct investment in US history.”
Photo: Bloomberg
It follows Trump’s accusations that Taiwan stole the US chip industry and his threats to impose tariffs of up to 100 percent — and Taipei’s promises to invest more in the US.
The following is a look at what TSMC’s investment could mean for Taiwan.
‘SILICON SHIELD’
Photo: AFP
Semiconductor chips are used in everything from smartphones and televisions to electric vehicles and missiles — and more than half of them are made in Taiwan.
The concentration of chip manufacturing has long been seen as a “silicon shield” protecting the country from an invasion or blockade by China — and an incentive for the US to defend it.
China has upped military pressure on Taiwan in recent years to press its unfounded claim of sovereignty over the country, where TSMC has its headquarters and the bulk of its fabrication plants.
That has fueled calls for the firm to move more of its production out of the country to avoid supply disruptions if China did attack. Trump recently warned of import levies of 25 percent, or higher, on overseas-made chips, which one analyst has said could trigger a recession in the industry.
While TSMC’s latest investment might deflect the threat of tariffs, there are fears it could hurt Taiwan’s economy and weaken its “silicon shield.”
“The more TSMC produces in the United States, the less important Taiwan will be in geopolitics and the less incentives the United States will have to help Taiwan in the future,” said Ko Ju-chun (葛如鈞), a lawmaker with the main opposition Chinese Nationalist Party.
CONTROL OF TSMC
Taiwan’s leaders are aware of the risks as they try to stay onside with their most important security backer Washington and protect the nation’s status as a chip-making powerhouse.
President William Lai (賴清德) office said Tuesday the government would review TSMC’s deal “in accordance with the law” and ensure that the “most advanced” chip-making processes stayed in Taiwan.
TSMC had already pledged to invest more than US$65 billion in three factories in the US state of Arizona, one of which began production late last year. The US$100 billion investment will be used to expand its US footprint further, with three new fabrication plants, two advanced packaging facilities and a research and development team center.
Richard Hu (胡瑞舟), deputy director of the Taiwan Center for Security Studies think tank, said Trump wanted to prevent TSMC from falling into China’s hands and to make it a “technological asset of the United States.”
“Trump’s ultimate goal is to ensure that the US can fully or critically control TSMC’s semiconductor production, making it a de facto part of America’s chip industry,” Hu said.
DEFENSE GUARANTEES
Taipei security analyst Su Tzu-yun (蘇紫雲) was more optimistic, saying that TSMC’s investment would make Taiwan “safer” and help grow the chip industry.
It would also build trust between Taipei and Washington, and ease Trump’s concerns about US economic security, said Su, from the Institute for National Defense and Security Research.
“I think the importance of Taiwan is not only TSMC but also the geostrategy,” Su said, noting the importance of global shipping lanes near Taiwan.
However, James Yifan Chen of Tamkang University said higher manufacturing costs in the US would drive up prices of products using TSMC chips.
And there were no guarantees the investment would make the mercurial Trump more inclined to defend Taiwan.
“The deal’s effect on US willingness to defend Taiwan is unclear,” said Sung Wen-Ti (宋文笛), a nonresident fellow with the Atlantic Council’s Global China Hub.
“It really depends on how Trump feels on any particular day, and whether Beijing will attempt to outbid Taiwan subsequently.”
Ajay Verma, a consultant gastroenterologist at Kettering general hospital in Northamptonshire, says our gut is a “complex machine.” “It is constantly providing us with the nutrition we need, initially to grow and develop, and then for us to survive, thrive and repair from injury and illness.” How can we keep it functioning well? Put simply: “Make sure what you put into it is balanced, and that you clear out its waste products adequately,” Verma says. “In a general gastroenterology clinic, the most common conditions we see are irritable bowel syndrome (IBS), gastroesophageal reflux disease, inflammatory bowel disease and constipation,” says Nisha
The arithmetic is straightforward and uncomfortable. By the end of 2025, Taiwan had committed itself to a 50-30-20 electricity mix — half natural gas, 30 per cent coal, 20 per cent renewables. The Ministry of Economic Affairs’s (MOEA) own monthly energy reports tell a different story. Natural gas reached 47.8 per cent of generation last year. Coal stood at 35.4 per cent, comfortably above its target ceiling. Renewables came in at 13.1 per cent, well short of the 20 per cent Taipei had pledged a decade earlier. Installed renewable capacity reached roughly half of the 12 gigawatts (GW) the government
Last week US President Donald Trump was asked by a reporter whether he would speak on the phone to the President of Taiwan. “l’ll speak to him. I speak to everybody. We have that situation very well in hand,” Trump said. This marked the second time in a couple of weeks he had said he would talk to the President of Taiwan. In 2016 he famously took a call from then-president Tsai Ing-wen (蔡英文), when he was president-elect. Despite warnings that the apocalypse was nigh because of a phone call, the world quickly forgot about the conversation between two democratically-elected presidents.
May 25 to May 31 Few believed that apples could be cultivated on a commercial scale in Taiwan’s high mountains. When horticulturalist Cheng Chao-hsiung (程兆熊) first proposed the idea in 1955, both American and Taiwanese colleagues dismissed it as implausible, arguing that temperate fruit could not be reliably grown on a subtropical island, especially on rugged terrain. However, it was this terrain in the Central Mountain Range where many Chinese Civil War veterans were resettled in the late 1950s. With limited job prospects and no family in Taiwan, they were placed on cooperative farms aimed toward self-sufficiency. Some say the conditions
RSS