Taiwan is increasingly worried about TSMC’s US$100 billion investment in Arizona, which could threaten its semiconductor industry dominance. The investment includes key facilities in response to Trump’s tariff threats. Experts view this as a significant geopolitical challenge for Taiwan in maintaining its industry foothold.

The growing concerns in Taiwan regarding TSMC’s investment commitments in Arizona stem from potential implications for the island’s semiconductor industry. As part of a US$100 billion pledge aimed at establishing high-tech semiconductor facilities, TSMC plans to enhance its operations in Arizona with a research and development center, two advanced packaging facilities, and three additional semiconductor fabs, raising its total investment in Arizona to US$165 billion.

This investment was announced during a period of intense pressure from former U.S. President Donald Trump, who has vocalized accusations that Taiwan is “stealing” from the U.S. chip sector, even threatening to impose substantial tariffs on imported chips. The initiative was partly a strategic move to mitigate these tariff threats.

Max Lo, the Executive Director of the Taiwan International Strategic Study Society, emphasized that Trump’s tariff strategy has yielded favorable outcomes for the former president, reflecting a broader concern among Taiwanese experts about the geopolitical implications of such investments on Taiwan’s semiconductor sovereignty.

The situation surrounding TSMC’s substantial investment in Arizona emphasizes the balancing act Taiwan faces in maintaining its semiconductor industry while responding to international pressures. The potential loss of dominance in semiconductor manufacturing is a significant concern, particularly given the geopolitical landscape influenced by U.S. tariff strategies. As TSMC invests heavily abroad, Taiwan must navigate these developments with caution to safeguard its industry’s strategic importance.

Original Source: www.scmp.com

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