Taiwanese chipmaking large TSMC’s plan to take a position $100 billion within the U.S. was a “historic moment” for Taiwan-U.S. ties, the island’s President Lai Ching-te mentioned Thursday.
TSMC, the world’s largest chipmaker, introduced the plan this week after U.S. President Donald Trump threatened to impose tariffs on overseas-made chips.
It will take the whole quantity TSMC has pledged to put money into the U.S. to $165 billion, which the corporate mentioned was the “largest single foreign direct investment in U.S. history.”
This was a “historic moment for Taiwan-U.S. relations,” Lai mentioned in a joint news convention with TSMC chairperson and chief govt C.C. Wei on the Presidential Office.
It comes after Trump’s accusations that Taiwan stole the U.S. chip trade and his threats to impose tariffs of as much as 100%, in addition to Taipei’s guarantees to take a position extra within the U.S.
TSMC has lengthy confronted calls for to maneuver extra of its manufacturing away from Taiwan, with fears that provides of crucial know-how may very well be disrupted in any battle with Beijing.
Trump lately ratcheted up the strain on TSMC and different chip producers by publicly mulling the introduction of 25%, or increased, tariffs on all chips made exterior the U.S.
Speaking on Thursday, Lai mentioned the federal government was not pressured by Washington “during TSMC’s U.S. investment process.”
Wei mentioned TSMC’s enlargement was pushed by rising demand from U.S. shoppers and it might not have an effect on the corporate’s investments in Taiwan.
TSMC deliberate to construct 11 new manufacturing strains in Taiwan this yr to fulfill demand, Wei mentioned, including, “Our production capacity is not enough.”
“Each time TSMC makes a strategic move, TSMC becomes stronger and more competitive,” Lai mentioned.
“At the same time, it also provides Taiwanese enterprises with opportunities for international cooperation and contributes to Taiwan’s greater strength.”
Taiwan is a world powerhouse in semiconductor manufacturing, with greater than half of the world’s chips and practically all the high-end ones made there.
The focus of chip manufacturing in Taiwan has lengthy been seen as a “silicon shield” defending it from an invasion or blockade by China – and an incentive for the U.S. to defend it.
China has upped army strain on Taiwan lately to press its declare of sovereignty over the self-ruled island, the place TSMC has its headquarters and the majority of its fabrication vegetation.
Source: www.dailysabah.com