Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would not produce its most advanced chips in the US next year, Minister of Economic Affairs J.W. Kuo (郭智輝) said today, after the company announced plans to invest another US$100 billion in US semiconductor manufacturing over the next four years.
US President Donald Trump and TSMC chairman C.C. Wei (魏哲家) yesterday announced that TSMC would invest in three new chip fabs, two advanced packaging plants and a research and development center in the US during a meeting at the White House.
By investing in the US, TSMC could avoid paying high tariffs, Trump said.
Photo: Sam Yeh, AFP
TSMC is already investing US$65 billion in Arizona to build three advanced wafer fabs.
The first fab in Arizona has started production using the 4-nanometer (nm) process, while the second fab, which is to be using the more sophisticated 3nm, 2nm and A16 processes, is currently under construction and is expected to begin production in 2028.
The third, of which TSMC has said little to date, is expected to begin production by 2030 using 2nm or more advanced processes, TSMC said in April last year.
Answering questions from lawmakers this morning, Kuo said “it would be impossible” for TSMC’s 2nm and 1.6nm chips to be produced in the US next year.
All overseas investments are subject to review, but approval of the TSMC deal is 99.9 percent certain, Kuo said in response to concern about whether the Department of Investment Review would find issues with the deal.
The government has been working with its allies to maintain peace and stability in the Asia-Pacific region, and any disruption to Taiwan would affect the entire world, including China, Premier Cho Jung-tai (卓榮泰) said.
Therefore, regardless of overseas investments and industrial expansion, Taiwan must continue to be a world leader in manufacturing, Cho added.
The government first heard that the deal was finalized in yesterday’s official announcement, but it maintained close and effective communication with TSMC regarding the project beforehand, Cho said.
Speaking to reporters before the session, Cho said that the plan aligns with Taiwan’s core principle of strengthening domestic industries while expanding its global presence.
The government wholeheartedly endorses initiatives that promote Taiwan’s key position in the global semiconductor supply chain and increase the competitiveness of Taiwanese chips, Cabinet spokesperson Michelle Lee (李慧芝) said in a news release.
The government would first conduct a thorough legal review into TSMC’s plans to ensure the development of the company and Taiwan’s semiconductor industry, she said.
The US is Taiwan’s most important trading partner and the two have cooperated for many years in the science and technology industry, boosting the economy and providing countless employment opportunities on both sides of the Pacific, she added.
Since Trump’s first term in office, Taiwan has been shifting investments stateside, with the US becoming Taiwan’s top outbound investment destination, constituting 30 percent of Taiwan’s foreign investments last year while investment in China has declined, she said.
Presidential Office spokesperson Karen Kuo (郭雅慧) said the government knew about the deal in advance and would assist.
It would also “ensure that the most advanced processes stay in Taiwan,” she added.
GAINING STEAM: The scheme initially failed to gather much attention, with only 188 cards issued in its first year, but gained popularity amid the COVID-19 pandemic Applications for the Employment Gold Card have increased in the past few years, with the card having been issued to a total of 13,191 people from 101 countries since its introduction in 2018, the National Development Council (NDC) said yesterday. Those who have received the card have included celebrities, such as former NBA star Dwight Howard and Australian-South Korean cheerleader Dahye Lee, the NDC said. The four-in-one Employment Gold Card combines a work permit, resident visa, Alien Resident Certificate (ARC) and re-entry permit. It was first introduced in February 2018 through the Act Governing Recruitment and Employment of Foreign Professionals (外國專業人才延攬及雇用法),
RESILIENCE: Deepening bilateral cooperation would extend the peace sustained over the 45 years since the Taiwan Relations Act, Greene said Taiwan-US relations are built on deep economic ties and shared values, American Institute in Taiwan (AIT) Director Raymond Greene said yesterday, adding that strengthening supply chain security in critical industries, enhancing societal resilience through cooperation and deepening partnerships are key to ensuring peace and stability for Taiwan in the years ahead. Greene made the remarks at the National Security Youth Forum, organized by National Taiwan University’s National Security and Strategy Studies Institution in Taipei. In his address in Mandarin Chinese, Greene said the Taiwan-US relationship is built on deep economic ties and shared interests, and grows stronger through the enduring friendship between
CAUTION URGED: Xiaohongshu and Douyin — the Chinese version of TikTok — are tools the Chinese government uses for its ‘united front’ propaganda, the MAC said Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) yesterday urged people who use Chinese social media platforms to be cautious of being influenced by Beijing’s “united front” propaganda and undermining Taiwan’s sovereignty. Chiu made the remarks in response to queries about Chinese academic Zhang Weiwei (張維為) saying that as young Taiwanese are fond of interacting on Chinese app Xiaohongshu (小紅書, known as RedNote in English), “after unification with China, it would be easier to govern Taiwan than Hong Kong.” Zhang is professor of international relations at Shanghai’s Fudan University and director of its China Institute. When giving a speech at China’s Wuhan
ENHANCE DETERRENCE: Taiwan has to display ‘fierce resolve’ to defend itself for China to understand that the costs of war outweigh potential gains, Koo said Taiwan’s armed forces must reach a high level of combat readiness by 2027 to effectively deter a potential Chinese invasion, Minister of National Defense Wellington Koo (顧立雄) said in an interview with the Chinese-language Liberty Times (sister newspaper of the Taipei Times) published yesterday. His comments came three days after US Secretary of State Marco Rubio told the US Senate that deterring a Chinese attack on Taiwan requires making a conflict “cost more than what it’s worth.” Rubio made the remarks in response to a question about US policy on Taiwan’s defense from Republican Senator John Cornyn, who said that Chinese