 "TSMC defends $100 billion US investment, denies any pressure from Trump admin")
Top chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) along with Taiwanese president Lai Ching-te held a joint press briefing and defended the company’s $100 billion investment in the US, saying it was driven by customer demand, not pressure from the Trump administration.
TSMC said earlier this week it would invest $100 billion in three more chip manufacturing plants, along with two packaging facilities in Arizona.
Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest chipmaker.
The move raised concerns that Taiwan might not benefit much from shifting advanced manufacturing to the US.
Taiwan President Lai Ching-te dismissed claims that TSMC’s decision was influenced by US pressure. Earlier, President Donald Trump had accused Taiwan of taking US chip business and said he wanted it back.
“TSMC’s decision is necessary for its future development. The government did not face pressure from the United States during TSMC’s investment process in the US,” said Lai.
TSMC CEO CC Wei emphasised that he had spoken with the firm’s customers and realised that TSMC’s current expansion plans in the US were insufficient to meet current demand.
“Customer demand has been steadily increasing. For TSMC, our investment plans are based on customer needs, and we are very cautious,” Wei said.
He said that the amount of investment in the US may seem large, but it is still not enough to meet demand.
Impact Shorts
More ShortsUS support for Taiwan uncertain under Trump 2.0
US support for Taiwan seems uncertain under the Trump administration. Trump has argues that Taiwan depends too much on the US and should increase its defense spending.
A Pentagon nominee recently suggested that Taiwan should spend about 10 per cent of its GDP on defense to prevent a conflict with China.
Last month, Taiwan’s President Lai Ching-te pledged to raise defense spending to over 3 per cent of GDP, up from less than 2.5 per cent.
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