Chinese Nationalist Party (KMT) lawmakers this week voiced concerns that a recent pledge by Taiwan Semiconductor Manufacturing Co (TSMC) to invest more in the US could threaten national security.
TSMC chairman C.C. Wei (魏哲家) and US President Donald Trump on Monday in Washington announced that the company is to invest an additional US$100 billion to expand its manufacturing operations in the US.
The pledge was for three semiconductor foundries, two advanced packaging facilities, and a research and development center.
Photo: Liu Hsin-de, Taipei Times
That would be on top of the US$65 billion TSMC has already committed to invest in three chip fabs, one of which has begun operations.
In an interview on Wednesday, KMT caucus whip Fu Kun-chi (傅?萁) said he was worried about what Taiwan would be left with if the ability to manufacture all the most advanced chips, including the 2-nanometer and 1.6-nanometer processes, were deployed in the US.
If a cross-strait war were to occur, the US would possess the most advanced and high-end chip manufacturing processes, leaving Taiwan with nothing to safeguard, Fu said.
Asked whether TSMC’s investment would minimize the impact on the US if China were to isolate or take Taiwan, Trump said it would make the US a “very big part” of the business.
“So it would have a big impact if something should happen with Taiwan,” he said.
KMT Legislator Wang Hung-wei (王鴻薇) on Wednesday said that the additional US$100 billion TSMC pledged to invest was more than the central government’s total budget for this year.
She said that while the investment seemed to put Trump at ease, the government has yet to explain to the public what the nation got in return.
There has been no explanation whether the investment would keep Taiwan exempt from trade wars or how Taiwan is to keep its semiconductor advantage, she said.
The Presidential Office on Tuesday promised that the government would ensure TSMC keeps its most advanced processes in Taiwan.
TSMC is expected to begin mass production of 2-nanometer chips in Taiwan in the second half of this year, followed by 1.6-nanometer chips next year. Its first factory in Arizona is using the 4-nanometer process.
KMT Chairman Eric Chu (朱立倫) said that the US would gain manufacturing skills and talent, while Taiwan would lose its semiconductor manufacturing and development base and talent.
He questioned why the Democratic Progressive Party was not willing to stand on the front lines as Taiwan faces an artificial intelligence war and trade war.
On Tuesday, the Ministry of Economic Affairs said TSMC’s investment plans took into account its long-term competitiveness and the demands of global clients.
The move would help strengthen the stability of the global semiconductor supply chain, the ministry said, expressing its “unwavering” stance to support Taiwan’s advanced industries to keep their roots in Taiwan, regardless of how they deploy globally.
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