Taiwan's President Addresses Anxiety Over TSMC's $100 Billion U.S. Investment

In a move viewed as pivotal, Taiwan's President Lai Ching-te emphasizes the benefits of TSMC's U.S. investment plan while addressing domestic anxieties.

President Lai Ching-te of Taiwan reassured citizens on Thursday regarding Taiwan Semiconductor Manufacturing Company’s (TSMC) controversial announcement to invest $100 billion in its operations in the United States. The world’s largest chip manufacturer has committed to expanding its Arizona facility over the next four years to develop chips for artificial intelligence and various high-tech applications. This development follows pressures from former President Trump, who has urged Taiwan to diversify its semiconductor production away from the island, threatening tariffs if it fails to comply.

While the investment might be advantageous globally, it has sparked significant concern among Taiwanese citizens. Many view the chip industry as crucial for Taiwan's economy and a deterrent against potential aggression from China, which sees Taiwan as part of its territory. TSMC’s new commitment raises the total its planned expenditures in the U.S. to an impressive $165 billion, far surpassing its earlier commitments.

During a pressed news conference alongside TSMC CEO C.C. Wei in Taipei, President Lai affirmed that the investment is beneficial not just for TSMC, but for Taiwan and the U.S. as well. He asserted, “Every initiative by TSMC has strengthened its competitive edge, provided Taiwanese businesses with international opportunities, and bolstered Taiwan’s overall strength.” Mr. Lai expressed optimism about Taiwan’s future, saying that the island can now “confidently cross the Pacific Ocean and expand eastward to the American continent.”