Taiwan’s semiconductor giant TSMC announced a massive $100 billion investment in the US, making it the largest foreign direct investment on US soil in history. The deal is expected to create tens of thousands of construction jobs and boost US technology development.
TSMC’s CEO CC Wei met with US President Donald Trump at the White House, announcing the investment. However, under Taiwanese law, TSMC needs government approval for any foreign investment over $1.5 billion. The government has not yet received an application from TSMC.
The deal has raised concerns about Taiwan’s security, with opposition lawmakers warning that it could weaken the country’s geopolitical importance and reduce US support. Taiwan’s chip industry contributes 15% of the country’s GDP and is seen as a key leverage to keep China out of the region.
Despite assurances from President Lai Ching-te and Wei, the details of the deal remain vague. The government has said it will ensure that TSMC keeps its advanced manufacturing processes in Taiwan, but this contradicts statements made by both leaders at the White House.
The economic affairs ministry attributed Taiwan’s success in the chip industry to its high-quality semiconductor talents, including a lauded training-to-employment pipeline. However, concerns about the “silicon shield” – a critical piece of leverage for Taiwan – remain.
President Lai and Wei held a press conference on Thursday, but did not answer questions about tariffs or the security of the silicon shield. Experts have called for clarity from the government about the potential economic and psychological effects of TSMC’s decision.
Source: https://www.theguardian.com/world/2025/mar/07/taiwan-tsmc-deal-us-microchip-technology-investment