A ceremony at the White House, presided over by President Donald Trump, unveiled a $100 billion investment from Taiwan Semiconductor Manufacturing Company (TSMC), described by Trump as the world’s most powerful company. However, the announcement sparked concerns in Taiwan about losing its semiconductor industry to the U.S. due to political pressures.
Taiwan’s former President Ma Ying-jeou accused the ruling Democratic Progressive Party (DPP) of “selling TSMC” to Trump as a “protection fee,” calling it a major national security crisis. To reassure the public, Taiwan President Lai Ching-te appeared alongside TSMC CEO CC Wei, stating that the company’s U.S. investment would not undermine its commitment to expanding in Taiwan.
TSMC produces over 90% of the world’s advanced microchips, crucial for smartphones, artificial intelligence, and weapons. This global dependence serves as a “silicon shield” against potential Chinese invasion. China’s ruling Communist Party considers Taiwan part of its territory and has escalated military activities around the island.
Trump’s rhetoric has raised uncertainties about U.S.-Taiwan relations, accusing Taiwan of “stealing” the U.S. semiconductor industry while demanding payment for “protection.” Some Taiwanese liken Trump’s approach to his handling of Ukraine, fearing Taiwan might become a bargaining chip.
TSMC’s CEO attributed the increased investment to strong demand from American customers like Apple, Nvidia, AMD, Qualcomm, and Broadcom, aiming to reduce supply chain risks. The company was awarded $6.5 billion in grants under the Chips Act for its first three plants in Arizona. Analysts praised TSMC’s decision as agile, noting the lack of details provides flexibility for spending based on future conditions.
TSMC’s investment aligns with Trump’s preference for weaponizing tariffs rather than incentivizing domestic investment through subsidies. Commerce Secretary Howard Lutnick stated that the threat of tariffs influenced TSMC’s decision more than additional grants. With TSMC’s new investment, Trump is expected to pressure other major companies, including Samsung and Intel, to follow suit. — news from CNN