Minister Says TSMC’s $100 Billion “Made In America” Deal Requires Economic Ministry Approval

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TSMC’s Investment Scrutiny: A Matter of National Security

The Taiwan Semiconductor Manufacturing Company (TSMC) faces restrictions on its investments in the United States if such actions are deemed to jeopardize Taiwan’s national security or economic stability. This announcement came from Economic Minister J. W.Kuo during a recent session of Taiwan’s Legislative Yuan, where he emphasized that any investment by TSMC would require approval from his ministry.

Recent Developments in TSMC’s US Investment Plans

Kuo’s comments followed a stirring announcement earlier this month concerning TSMC’s ambitious plan to invest $100 billion in U. S.chip manufacturing, an endeavor highlighted by a recent public appearance with President Trump at the White House. Additionally, TSMC has budgeted $65 billion for a vast semiconductor manufacturing facility in Arizona.

Clarifications Amidst Political Scrutiny

During questioning from members of the ruling Democratic Progressive Party (DPP) and the opposition, Kuo faced scrutiny over his prior lack of awareness regarding TSMC’s investment plans. He had previously stated that he was uninformed about the major $100 billion announcement before it was made public, which elicited criticism and calls for his resignation amid allegations of possible conflicts of interest.

In response to the recent inquiries, Minister Kuo asserted that all pertinent government entities were informed about TSMC’s investment intentions. However, he acknowledged a failure to recall the exact investment amount, leading to an uproar in the legislative session. Kuo contended that his earlier remarks were misrepresented, contributing to the misunderstanding.

Government Oversight on TSMC’s Future Investments

In terms of regulatory oversight, Kuo confirmed that Taiwan’s National Security Council, along with the Executive Yuan and his ministry, will thoroughly scrutinize TSMC’s U. S.investment. Specifically, his ministry’s Investment Review Committee will play a crucial role in assessing the implications of this significant financial commitment.

Rumors Regarding Potential Investments in Intel

Amid speculation, Kuo was also questioned about potential investments by TSMC in struggling U. S.chipmaker Intel, as market buzz triggered a spike in Intel’s stock. However, the minister clarified that since TSMC had not publicly verified such claims, he would refrain from commenting on these market rumors.

Evaluating Risk Factors for TSMC’s U. S.Investment

Regarding the substantial $100 billion investment, Kuo outlined a framework for evaluation that includes potential adverse impacts on Taiwan’s economic growth, adherence to international trade agreements, and concerns over intellectual property rights or labor issues. The minister made it clear that the investment would not be approved if any of these criteria are violated.

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