Taiwan Semiconductor Manufacturing Company (TSMC) has announced a $100 billion investment in its US expansion, sparking criticism that the move is a “sell-out” for the Taiwanese government. However, industry analysts argue that the deal will not significantly impact Taiwan’s economy and may actually give TSMC an advantage globally.
The $100 billion investment will only account for 5-7 percent of TSMC’s total output, according to Ming-Chi Kuo, a prominent industry analyst. Critics claim that this move shows the Taiwanese government is willing to sacrifice its domestic semiconductor industry in favor of US interests. However, Professor Zhu Songling from Beijing Union University says that TSMC will likely maintain its international strategic value despite the investment.
The deal is part of the US government’s efforts to establish a robust semiconductor supply chain within the country. The Global Times reported that the majority of TSMC’s production will cater to America’s strategic needs, while negatively impacting Taiwan’s economy. Nevertheless, experts argue that TSMC’s expansion in the US will not lead to its dismantling.
The example of Japanese carmakers in the 1980s who set up factories in the US under restrictions on imports is often cited as a parallel. This could potentially happen for the semiconductor industry, where TSMC gains an advantage in the US market due to its proximity. However, only time will tell if this trend will prevail in the semiconductor business.
Industry insiders point out that while the investment is significant, it will not reduce revenue or harm jobs in Taiwan. The Taiwanese company can continue to produce more chips using additional manufacturing capacity outside of the US without compromising its primary advantage – smaller nodes. This expansion allows TSMC to improve production without sacrificing its competitive edge.
Source: https://www.tomshardware.com/tech-industry/tsmcs-usd100-billion-u-s-deal-shows-taiwans-ruling-party-is-selling-out-taiwan-say-critics