Hong Kong, China – In a surprising move, President Donald Trump hosted a ceremony at the White House to announce a $100 billion investment from Taiwan Semiconductor Manufacturing Company (TSMC), which he hailed as the world’s most powerful company.
The announcement, however, sparked concerns in Taiwan about the potential loss of its semiconductor industry to the United States due to political pressures. Former Taiwanese President Ma Ying-jeou accused the ruling Democratic Progressive Party (DPP) of “selling TSMC” to Trump as a “protection fee,” labeling the situation as a national security crisis.
Amidst these tensions, Taiwan President Lai Ching-te assured the public that TSMC’s investment in the US would not impact the company’s commitment to Taiwan and its plans for expansion on the island. TSMC is a key player in the semiconductor industry, producing over 90% of the world’s advanced microchips that power various technologies.
With China claiming Taiwan as part of its territory and escalating military activities around the island, concerns about Taiwan’s security have been heightened. The United States, under the Taiwan Relations Act, is obligated to support Taiwan in defending itself against potential Chinese aggression.
President Trump’s recent comments about Taiwan and his insistence on Taiwan paying for “protection” have raised uncertainties about the future of US-Taiwan relations. These developments have led to comparisons between Ukraine and Taiwan, with concerns about Taiwan becoming a bargaining chip in international politics.
Despite the concerns raised by some in Taiwan, others believe that TSMC’s decision to invest in the US was a strategic move. The company’s increased investment in the US was attributed to strong demand from American customers and the desire to reduce potential supply chain risks.
The investment by TSMC is part of a broader trend of foreign companies committing significant sums to the US under the Trump administration. Trump’s approach of using tariffs to incentivize investments has proven effective, with other major companies following suit in expanding their presence in the US.
While TSMC’s investment signals a growing trend of foreign companies investing in the US, it also raises questions about the implications for global semiconductor markets. With the landscape of international politics constantly shifting, the impact of such investments on geopolitical dynamics remains to be seen.