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Taiwan says TSMC investment 'historic moment' for US ties / Photo: I-Hwa CHENG - AFP
NYSE - LSE
Taiwan says TSMC investment 'historic moment' for US ties
Taiwanese chipmaking giant TSMC's plan to invest $100 billion in the United States was a "historic moment" for Taiwan-US ties, the island's President Lai Ching-te said on Thursday.
TSMC, the world's largest chipmaker, announced the plan this week after US President Donald Trump threatened to impose tariffs on overseas-made chips.
It will take the total amount TSMC has pledged to invest in the United States to $165 billion, which the company said was the "largest single foreign direct investment in US history".
This was a "historic moment for Taiwan-US relations", Lai said in a joint news conference with TSMC chairman and chief executive C.C. Wei at the Presidential Office.
It comes after Trump's accusations that Taiwan stole the US chip industry and his threats to impose tariffs of up to 100 percent, as well as Taipei's promises to invest more in the United States.
TSMC has long faced demands to move more of its production away from Taiwan, with fears that supplies of the critical technology could be disrupted in any conflict with Beijing.
Trump recently ratcheted up the pressure on TSMC and other chip manufacturers by publicly mulling the introduction of 25 percent, or higher, tariffs on all chips made outside the United States.
Speaking Thursday, Lai said the government was not pressured by Washington "during TSMC's US investment process".
Wei said TSMC's expansion was driven by growing demand from US clients and it would not affect the company's investments in Taiwan.
TSMC planned to build 11 new production lines in Taiwan this year to meet demand, Wei said, adding "our production capacity is not enough".
"Each time TSMC makes a strategic move, TSMC becomes stronger and more competitive", Lai said.
"At the same time, it also provides Taiwanese enterprises with opportunities for international cooperation and contributes to Taiwan's greater strength."
Taiwan is a global powerhouse in semiconductor manufacturing, with more than half of the world's chips and nearly all of the high-end ones made there.
The concentration of chip manufacturing in Taiwan has long been seen as a "silicon shield" protecting it from an invasion or blockade by China -- and an incentive for the United States to defend it.
China has upped military pressure on Taiwan in recent years to press its claim of sovereignty over the self-ruled island, where TSMC has its headquarters and the bulk of its fabrication plants.
(K.Jones--TAG)
