TAIPEI (Taiwan News) — The Cabinet said Thursday it will support TSMC's expanded US investment while ensuring the lion's share of its manufacturing capacity and most advanced technology remain in Taiwan.
TSMC Chair C.C. Wei (魏哲家) announced earlier Thursday that the company will invest an additional NT$3.16 trillion (US$100 billion) in Arizona to build several wafer fabs for 2 nm and below, as well as advanced packaging, per TrendForce. Despite TSMC's increased investment in Arizona, Wei stressed that the company will continue to expand its Taiwan operations.
Cabinet Spokesperson Michelle Lee (李慧芝) said the government respects TSMC's decision to expand overseas in response to global market demand, rapid AI growth, and supply chain regionalization, per Rti. She said the investment would strengthen Taiwan's strategic position in the global semiconductor industry while reflecting the company's international expansion plans.
Lee said that while TSMC is expanding its global footprint, it is also increasing its investment in Taiwan. She said TSMC is currently building 13 advanced-process and advanced-packaging facilities in the country and plans to make further investments.
She said the government will fully support the expansion of Taiwan's semiconductor industry by helping secure land, water, electricity, energy supplies, and other infrastructure, Rti reported. Lee said Taiwan will also pursue three policy priorities.
They include ensuring that the largest share of manufacturing capacity remains in the country, keeping the most advanced technology in Taiwan, and maintaining the most complete technology industry ecosystem.
Lee also said international companies, including Nvidia, AMD, and Micron, have expanded investments in Taiwan this year, demonstrating continued confidence in the country's semiconductor industry, per UDN. She added that Taiwan and the US have established a two-way investment cooperation mechanism under a bilateral investment memorandum of understanding.
The memorandum stipulates that Taiwanese companies plan to make US$250 billion in voluntary investments in the US, while Taiwan's government will support up to US$250 billion in financing through credit guarantees, Lee said. She added that Taiwan has secured preferential tariff treatment, including most-favored-nation status for future US Section 232 semiconductor tariffs and exemptions from certain import duties.
