Taiwan will launch an official investment examination of Taiwan Semiconductor Manufacturing Company (TSMC) in the United States, a decision that has aroused global attention and has raised concerns about its potential $ 100 billion investment.
The examination takes place in a context of intensifying American-Chinese geopolitical tensions and Washington’s assembly pressure on TSMC to comply with the export restrictions against Beijing.
The firm of the Cabinet Michelle Lee announced on Tuesday that the Taiwanese government would assess the American expansion plans of TSMC in light of the strategic position of Taiwan in the world semiconductor industry.
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“The government’s position on investments abroad is generally positive if they contribute to the globalization of the Taiwan industry and improve our global competitiveness,” said Lee, stressing a cautiously balanced approach in the midst of the complex geopolitical environment.
The investment offered by TSMC, revealed a few days earlier at the White House, implies the construction of five additional semiconductor installations in the United States, mainly in Arizona. The announcement, made alongside US President Donald Trump, said the importance of the American economic and national security agreement.
“Today, Taiwan Semiconductor announces that they will invest at least $ 100 billion in new capital in the United States during the next short period to build advanced semiconductor manufacturing facilities,” said Trump.
He underlined the critical role of semiconductors in the modern economy, describing them as “the backbone of the 21st century economy”.
American pressure and the Chinese factor
TSMC has undergone sustained pressure from the United States to align with its strategic objectives, in particular concerning China. The Trump administration considerably intensified these pressures, TSMC cutting up new orders from Huawei in 2020 to comply with American sanctions. These measures were part of the wider efforts to limit the technological and military progress of China, and the Trump administration has maintained this firm position.
This dynamic places the TSMC in a difficult position, balancing its commercial interests with the geopolitical realities dictated by its largest market and its strategic partner, the United States, however, the implications of the Taiwan examination on the investment of $ 100 billion remain vague, adding uncertainty to an already delicate situation.
Potential impact of the Taiwan examination
The examination process should examine the way in which the American expansion of TSMC aligns with Taiwan’s economic objectives and if it could weaken the domination of the island in the world market for semiconductors. Taiwan is the main producer of the most advanced chips in the world, an essential advantage which not only strengthens its economy but also improves its effect of geopolitical lever.
Analysts warn that the Taiwan government can impose conditions to ensure the strong domestic presence of TSMC, potentially affecting the scale or pace of its American projects. There are also speculations that Taiwan could seek insurance that key technologies and production capacity remain firmly rooted on the island.
Rates, incentives and national security
The American investment of TSMC is partly motivated by President Trump’s pricing strategy, which threatened to impose a 25% levy with imported semiconductive fleas. In addition, the Biden Flea and Administration Sciences Act of 2022 offered TSMC a subsidy of $ 6.6 billion, strengthening the financial viability of its American expansion.
For the United States, strengthening the production of national semiconductors is not simply an economic decision but also a national security strategy. Semiconductors’ fleas are essential for the technology, defense and infrastructure sectors, and reducing dependence on foreign manufacturing tokens is an absolute priority for Washington.
The Taiwan semiconductor industry is the cornerstone of its economy, TSMC playing a central role. The government’s examination could be a message to TSMC to avoid excessive resources abroad in a way that could undermine the technological leadership of Taiwan.
