We know that TSMC is a semiconductor manufacturing giant that started from Taiwan and is now leading the world when it comes to chips used in consumer electronics as well as other equipment as well. TSMC has also announced its plans to establish a chip manufacturing facility in the US as well as India and this will likely make its Taiwanese facility less powerful than it is now. However, TSMC chairman says that its roots will always remain in Taiwan despite the company now going global due to demands from US Senators to reduce American companies’ reliance on Taiwanese chips.
TSMC’s Chairman Mr. Liu said that “We have a pretty good relationship across Congress, the Commerce Department, and the White House. I think they know us. It’s understandable, but support or not, we have no say. China will not invade Taiwan because of semiconductors. China will not not invade Taiwan because of semiconductors,” he said. “It is really up to the U.S. and China: How do they maintain the status quo, which both sides want?” He also mentioned that “TSMC has made a $40 billion investment in Arizona to build two factories to produce chips that are one or two generations behind its most advanced ones. The company is expected to submit its application for CHIPS Act subsidies this month”
There is also a doubt as to whether the American companies will pay the cost of locally-manufactured semiconductor chips from TSMC which are expected to have 4x higher manufacturing costs compared to bringing them from Taiwan. TSMC’s Chairman, on the expansion of his company outside of Taiwan, said that “I thought maybe it’s time for TSMC to go a little bit global, because I know our technology is leading today, but what about in the future?”. He added that choosing America was correct because “the U.S. is where 65 percent of our customers reside,” and added that “They have different needs, and we also have opportunities.” It is worth adding that TSMC has embarked on a global expansion, with two factories under construction in the United States and one in Japan, as well as a possible facility in Germany
