TAIPEI (Taiwan News) — TSMC will build at least five more US fabs under a pending Taiwan-US trade deal but the company’s advanced process R&D will remain in Taiwan, National Science and Technology Council Minister Wu Cheng-wen (吳誠文) confirmed Wednesday.

Wu said in an interview on “News Firecrackers” that all overseas investment is subject to review and that TSMC’s advanced research will stay in the country, per CNA. The government, which holds a seat on TSMC’s board, has coordinated with the company to safeguard technology, he added.

Wu explained that higher costs and independent market development have limited Taiwanese investment abroad but US demand provides an opportunity to strengthen supply chains. He clarified that Taiwan’s proposal focuses on “industrial parks or clusters,” not science parks, following the fifth round of talks last year.

Meanwhile, the New York Times reported Monday that Taiwan and the US are close to a trade agreement that would cut US tariffs on Taiwanese imports to 15%. TSMC is planning major investment in Arizona though no timetable has been set, the report added.

According to Wu, the government will seek tax incentives and assist with visas through a team led by TSMC. He said trade talks are progressing smoothly though the timing of any pre-Lunar New Year announcement depends on the US side.