Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, is making significant foreign investments, a move that a senior government official says will be “very beneficial” for Taiwan. The official stated that these investments would allow TSMC to work more closely with customers, recruit top talent, and develop advanced technologies.
TSMC’s overseas investments have sparked concerns among local commentators about the potential erosion of Taiwan’s manufacturing leadership. However, Taiwan’s Deputy Minister of Economic Affairs, C.C. Chen, believes these investments are beneficial for Taiwan both economically and from a security perspective.
TSMC has pledged to build three advanced plants in the US state of Arizona, with total investments exceeding $65 billion. The company is expected to receive $11.6 billion in US grants and loans for the project. The third plant in the US is anticipated to manufacture chips using 2-nanometer or more advanced technology, with production commencing by the end of the decade.
Chen stated that the Taiwanese government has approved TSMC to manufacture less advanced 3nm, 4nm, and 5nm chips in the US. However, if the company plans to produce its most advanced chips overseas, the plan needs to be approved by Taipei first.
This development underscores the global race to boost chip output at home to avoid supply disruptions and act as a hedge against growing tensions in the Taiwan Strait. TSMC’s foreign investments are seen as a strategic move to strengthen its position in the global semiconductor market and contribute to Taiwan’s economic growth and security.
Read more: finance.yahoo.com