Taiwan’s government has reassured that its advanced semiconductor technology will remain onshore, despite a new $100bn deal signed between chip maker TSMC and former US President Donald Trump. The agreement aims to boost US manufacturing and assert trade dominance, but critics argue it undermines Taiwan’s national security.
The surprise announcement sparked controversy in Taiwan, where the industry is crucial to its economy and national security. TSMC, which produces almost all of the world’s most advanced semiconductors, has agreed to increase its existing US investment by $100bn and build new facilities on US soil.
However, government officials have pledged to ensure that sensitive technology will remain in Taiwan. Presidential office spokesperson Karen Kuo stated that TSMC will “keep its most advanced manufacturing processes in Taiwan.” The statement has been met with skepticism, as details of any restrictions are unclear.
Taiwan’s defense minister Wellington Koo remains confident that the US will protect his country despite the deal. However, opposition figures argue that losing its semiconductor industry would significantly reduce Taiwan’s defenses and make it more vulnerable to Chinese aggression.
The TSMC deal has drawn criticism from Taiwanese opposition parties, who fear it will erode the country’s strategic advantage and increase the risk of an invasion by China. The US government has repeatedly stated its support for Taiwan’s security, but the latest development has raised questions about the commitment.
Source: https://www.theguardian.com/business/2025/mar/04/taiwan-trump-semiconductor-deal-tsmc