Social Media User Claims TSMC’s Impact Has Made Buying a House in Taiwan Impossible

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The soaring success of Taiwan Semiconductor Manufacturing Company (TSMC) has inadvertently created barriers for local residents attempting to enter the housing market, as highlighted in a recent discussion on the social media platform DCard. Dominating the semiconductor industry, TSMC stands as Taiwan’s largest and most valuable enterprise, contributing significantly to the region’s security and geostrategic relevance. In a bid to attract TSMC for facility expansions, various Taiwanese provinces have been known to offer substantial incentives. However, this corporate success has sparked a notable rise in housing prices in areas surrounding TSMC’s operations.

Impact of TSMC’s Growth on Housing Affordability

A recent DCard post reveals alarming trends in housing costs across major Taiwanese cities including Hsinchu, Taichung, Tainan, and Kaohsiung. According to this post, TSMC, founded in Hsinchu and operating manufacturing plants in all mentioned cities, is a primary driver behind these escalations in real estate prices.

While the commenter acknowledges TSMC’s role in showcasing Taiwan’s semiconductor prowess on a global scale, they express concerns about the adverse effects on local real estate dynamics. The expansion and establishment of TSMC facilities correlate directly with skyrocketing housing prices, creating a distressing ripple effect throughout the regions.

The situation isn’t confined to just areas near TSMC’s plants. The increase in housing costs permeates entire urban locales, impacting individuals not employed in high-tech industries as well as those lacking significant inherited wealth, leaving many residents trapped in a cycle of rental dependency.

Flooded street in Kaohsiung after Typhoon Gaemi struck Taiwan on July 25, 2024 / Image credits – CNA/AFP via Getty

The rising housing costs have created a disproportionate wealth pyramid in Taiwan’s society, where high-earning professionals accumulate resources, while others struggle to save even for a down payment. The social media commentator contrasts the current generation’s challenges with those experienced by previous generations, who once found that stable employment and long-term loans made homeownership attainable.

In response to these observations, several commenters expanded the conversation to include TSMC’s influence on the job market, noting that its competitive salaries draw many workers to the company. However, others argued that the core issue lies with low holding costs; over 70% of Taiwanese individuals own multiple properties, exacerbating the housing crisis.

Some respondents attributed the rising housing crisis to government policies, pointing out that speculative behaviors in the real estate market are to blame. The argument is that low construction costs for new homes lead landlords and developers to neglect the maintenance of empty properties, while the real estate sector thrives on maintaining hype to protect values.

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