Majority of Taiwanese Believe TSMC is Transitioning into a U.S. Foundry Following Trump Administration Investments

Concerns are mounting among the Taiwanese population regarding TSMC’s escalating investments in the United States. Many fear that this shift could herald the establishment of a “US-SMC, ”a U. S.-based semiconductor manufacturing entity.

Growing Concerns in Taiwan Over TSMC’s US Focus

The narrative surrounding TSMC’s potential transformation into an American foundry has gained traction in the media since the semiconductor giant made substantial investments in the U. S., reportedly amounting to “hundreds of billions, ”under the previous Trump administration. Tensions rose further with rumors circulating that the U. S.government might consider acquiring a stake in TSMC, prompting fears in Taiwan that the company’s allegiance may be shifting away from its home territory. A recent poll underscores this anxiety, revealing that 50% of respondents express concern about TSMC evolving into a U. S.-centric company, as reported by UDN.

A poll conducted by this newspaper shows that 50% of the public is concerned about TSMC becoming “TSMC of the United States.”Scholars and experts point out that this “TSMC of the United States”may already be a reality. Even if it isn’t, the US’s strategic deployment towards TSMC has already posed challenges to Taiwan’s semiconductor industry.– UDN (Automated Translation)

Experts from Taiwan’s renowned National Chengchi University suggest that the Trump administration’s strategy aims for TSMC to handle advanced chip nodes and sophisticated packaging in the U. S.They argue that TSMC’s presence is crucial; without it, Taiwan’s significance in the U. S.supply chain would diminish markedly. This highlights the semiconductor industry’s geopolitical complexities, especially amid rising tensions between Taiwan and China. The pivot toward the U. S.signifies broader ambitions that extend beyond mere production.

Technician holding a silicon wafer in a cleanroom environment, showcasing microchip technology. — Image Credits: TSMC

TSMC’s clientele is predominantly composed of high-profile American tech companies such as NVIDIA, Apple, Broadcom, and AMD, all of which are dependent on the firm’s cutting-edge manufacturing capabilities. In line with the Trump administration’s objectives to revitalize American manufacturing, leveraging trade restrictions has been a common tactic to motivate Big Tech companies to increase their investment domestically. TSMC is at the forefront of this shift, with its U. S.operations deemed essential for fostering relationships with the government and mitigating potential tariffs.

Nevertheless, Taiwan remains the cornerstone of TSMC’s operations, particularly in research and development of advanced chip technologies. Most of the company’s top talent hails from Taiwan, ensuring that the core competencies and manufacturing processes continue to reside in the region. Additionally, high-end nodes such as the N2 series are exclusively produced in Taiwan’s fabs, underscoring TSMC’s commitment to maintaining its technological prowess at home. However, there is no doubt that the company has significantly diversified its operations, showing a marked inclination towards the U. S.market.

For further updates on this evolving situation, refer to the coverage by Dan Nystedt.

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