TSMC investor conference expected to address U.S. '50-50' chip idea: Expert

Taipei, Oct. 4 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to address the U.S. government's "50-50" semiconductor production proposal during its upcoming investor conference on Oct. 16, an industry expert said Saturday.

● Taiwan won't agree to U.S. '50-50' chip idea, vice premier says

Liu Pei-chen (劉佩真), a researcher at the Taiwan Institute of Economic Research (TIER), told CNA that U.S. Commerce Secretary Howard Lutnick's remarks about achieving a 50-50 production split between Taiwan and the United States have drawn significant market attention and raised concerns among investors.

"If the idea is realized, TSMC could be pushed to move more of its advanced chip production to the United States, which would inevitably affect its investment plans in Taiwan," Liu said. "If TSMC's production here contracts, Taiwan's semiconductor development will be impacted. This deserves a careful response."

Lutnick said in a NewsNation interview released Sunday that "the conversation we've had with Taiwan [is] that it's vital for you to have us [the U.S.] produce 50 percent," adding, "The idea that I pitched them [Taiwan] was: let's get to 50-50. We're producing half, you're producing half."

TSMC is currently investing US$65 billion to build three advanced wafer fabs in Arizona, with the first having begun commercial production in late 2024.

In March, the chipmaker pledged to invest another US$100 billion in the U.S. state over the next few years to construct three more fabs, two IC assembly plants, and one research and development center.

On Wednesday, Vice Premier Cheng Li-chiun (鄭麗君), Taiwan's lead tariff negotiator with Washington, reiterated that the government does not agree with the 50-50 production split proposal.

Liu said that while TSMC has accelerated plans to start production at its second and third fabs in Arizona, some investors are worried that its investments in a second fab in Kumamoto, Japan, and a fab in Germany may be delayed. She noted that the company is likely to be pressed on these timelines during the investor call.

Investors will also be watching for updates on TSMC's 2-nanometer process, which is scheduled to enter commercial production later this year and is expected to drive revenue growth in 2026. Major clients, including Advanced Micro Devices Inc. and MediaTek Inc., have already announced plans to adopt the 2nm process for new devices.

In July, TSMC raised its 2025 sales growth forecast in U.S. dollar terms to 30 percent, up from 24-26 percent, citing strong demand for high-end technologies. Liu said robust global appetite for AI and high-performance computing (HPC) chips could prompt the company to upgrade its forecast again in the investor conference.