TAIPEI (Taiwan News) — The CEO of Taiwan Semiconductor Manufacturing Co. (TSMC) C. C. Wei (魏哲家) on Tuesday (June 4) said if a conflict took place in the Taiwan Strait, it would be impossible to move all of its production to the U.S.

With tensions rising across the Taiwan Strait, foreign media have expressed concerns about whether TSMC’s clients would request the transfer of production to the company’s Arizona plant in the U.S. if a conflict with China occurs. Wei said that while there have been discussions with clients about this possibility, it is impossible to move out of Taiwan completely, reported CNA. 

During a press conference held after TSMC’s shareholder meeting on Tuesday, Wei acknowledged that instability across the strait is a consideration for supply chain resilience. However, with 80-90% of TSMC’s total capacity in Taiwan, Wei said it is impossible to completely move production out of the country.

Wei hoped that war would not happen, noting that if it does, there would be far greater concerns than just the semiconductor industry. He expressed confidence that the leaders of both sides of the strait and the world are “clever and wise and will not let a war happen.”

He emphasized that TSMC’s most advanced processes will always start in Taiwan. While there are plans to produce 2-nanometer chips in the U.S., production of these chips will begin in Taiwan next year. Ensuring a strong foothold in Taiwan is crucial before expanding production elsewhere, argued Wei.

Regarding the issue of labor unions, Wei said TSMC does not worry about bad relations with unions in Taiwan but is “still learning how to interact with unions in the U.S." Wei added that progress in this area has been “going well so far.”

Wei said Taiwan remains TSMC’s top priority for future investments. Even though the U.S. plans to produce 2nm chips, Wei added the most advanced processes will “definitely start in Taiwan.”