This article does not constitute investment advice, and the author holds no position in the stocks mentioned.
TSMC’s $100 Billion US Investment: Taiwan’s Officials Report No Formal Applications
Taiwanese government representatives have confirmed that they have yet to receive any formal investment proposals from Taiwan Semiconductor Manufacturing Company (TSMC) concerning its ambitious plans to invest $100 billion in the United States. This investment initiative was initially unveiled in March during an announcement with former President Trump, effectively adding to TSMC’s already established $65 billion investment aimed at developing advanced chip manufacturing facilities in Arizona.
J. W.Kuo, Taiwan’s Economic Minister, alongside Su Chi-yen, Deputy Director General of the Ministry of Economic Affairs’ Investment Review Department, stated that the ministry has not received any application regarding the proposed investment as of now. According to Taiwanese law, any foreign investment exceeding NT$1.5 billion is subjected to a rigorous review process across various governmental departments prior to approval.
During a recent legislative caucus, Su Chi-yen addressed inquiries concerning the status of TSMC’s investment plans. While he was questioned by multiple political figures, Su abstained from providing specific information, noting that no application has been submitted, and emphasizing that the timeline allows TSMC ample opportunity to deliver their proposal.
Clarifications and Governmental Responses
The announcement of TSMC’s substantial US investment package has sparked considerable discussion and some controversy in Taiwan. Minister J. W.Kuo faced criticism earlier this year for reportedly being unaware of the deal at the time it was announced. He later clarified that he had withheld statements initially because he did not possess complete information regarding the financial specifics of the investment.
In recent comments, Kuo reaffirmed that his ministry has not received any materials related to TSMC’s investment, which he discussed during a legislative session examining the potential impacts of President Trump’s new import policies on Taiwan. In light of these developments, the Taiwanese government indicates a strategic shift, announcing plans to boost energy imports from the US, particularly from regions like Alaska.
TSMC’s $100 billion investment is poised to bolster its existing $65 billion plan, which includes a state-of-the-art chip manufacturing facility in Arizona destined to produce 2-nanometer chips in the United States. This expansion not only signifies TSMC’s commitment to US manufacturing but also positions the company to enhance its partnerships with industry leaders like NVIDIA, which aims to leverage products from TSMC’s new facilities for advanced AI graphics processing units.
The proposed expansion comprises three new production facilities, two packaging plants, and a dedicated research and development center. Amidst ongoing speculation regarding potential mergers, TSMC has recently dispelled rumors concerning any plans for joint ventures with Intel, which has been a topic of frequent discussion in stock market circles.
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