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TSMC chip plans in US fuel China security fears in Taiwan

17 13
12.03.2025

After the Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chipmaker, announced a $100 billion (€92 billion) expansion plan to build factories in the United States, concerns are mounting that offshoring production could weaken the self-ruled island's leverage in securing protection against China.

TSMC is the primary producer of many advanced semiconductors used in everything from smartphones to fighter jets. However, as China has vowed to "reunite" Taiwan with the mainland, by using force if necessary, the vulnerability of global semiconductor supply is a key strategic factor.

With this in mind, President Donald Trump, and former President Joe Biden before him, have both called for bringing advanced chip production to the United States.

While campaigning for his second term in office, Trump, without providing evidence, accused TSMC of "stealing" the US chip industry.

In 2020, TSMC announced billions of dollars in investment to build chip foundries in the southwestern US state of Arizona. After delays and more cash infusions, the first plant there began production in 2024. A second is due to begin production in 2028.

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Including last week's announcement, TSMC's total investment in the United States now amounts to $165 billion.

In a press conference, TSMC chairman CC Wei and Taiwanese President Lai Ching-te both insisted that the $100 billion investment........

© Deutsche Welle