Taiwan’s semiconductor giant TSMC has announced a historic $100 billion investment in the United States, hailed by President Lai Ching-te as a "momentous" development for Taiwan-US relations.
- The investment, set to total $165 billion, is described as the largest foreign direct investment in US history.
- However, the expansion has sparked concerns within Taiwan, with opposition lawmakers warning that it could weaken Taiwan’s geopolitical significance and national security, especially if China escalates military pressure.
Despite reassurances, some fear TSMC’s shift could diminish Taiwan’s strategic importance and its protection by the US.
#tsmc #trump #semiconductor #taiwan #chips #ustaiwandeal
#worldnews #clrcut #clrcutnews #internationalnews #globalnews #news 
However, the American expansion will only account
for 5–7 percent of TSMC's total output, according to industry analyst
Ming-Chi Kuo.
This isn’t the first time that Taiwan has been accused of giving away its semiconductor industry to the U.S.
- Chinese authorities previously said this just last month, accusing the DPP of selling out to the West in exchange for support for independence.
- Nevertheless, this investment is unlikely to result in TSMC’s dismantling.
- Instead, it would likely give it an advantage in the U.S. market and could even make it stronger globally.
We can look at the Japanese carmakers during the 1980s as a parallel
example. When Washington put restrictions on Japanese auto imports,
carmakers like Toyota and Honda put up factories within the U.S., which
helped them become some of the leading car brands across the globe.
- The same thing could potentially happen to the semiconductor industry, with TSMC gaining an advantage within the U.S. market due to its proximity. However, only time will tell if this will come to pass in the semiconductor business.
While it’s largely true that the U.S. wants TSMC and other chip
manufacturers to build facilities within its borders, it’s unlikely that
TSMC’s move will cause the company and Taiwan to lose international
strategic value.
- For one, it’s reported that despite the massive investment, the company’s American expansion will only account for 5–7 percent of its total output.
- And even if TSMC builds manufacturing capacity in the U.S., it’s unlikely that those factories will be part-and-parceled to American institutions.
- This is unlike Intel, whose foundry and chip design wings are being considered for sale to TSMC and Broadcom.
No comments:
Post a Comment