Opposition voices doubts about TSMC investment in U.S.

Taipei, March 5 (CNA) Lawmakers from the opposition Kuomintang (KMT) voiced concerns that the recent pledge by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) to invest more in the United States could threaten Taiwan's security.

TSMC Chairman C.C. Wei (魏哲家) and U.S. President Donald Trump announced Monday in Washington, D.C. that the company will invest an additional US$100 billion to expand its manufacturing operations in America.

The pledge was for three advanced semiconductor foundries, a packaging and an R&D center. That would be in addition to the US$65 billion TSMC has already committed to invest in three foundries, one of which has begun operations.

TSMC has been described in Taiwan, including by former President Tsai Ing-wen (蔡英文), as a "silicon shield," an asset that would help protect Taiwan from outside aggression, and the latest investment led to renewed security concerns.

In an interview Wednesday, KMT legislative caucus whip Fu Kun-chi (傅崐萁) worried about what Taiwan would be left with if the ability to manufacture all of the most advanced chips, including the 2 nanometer and 1.6 nm technologies, were moved to the U.S.

If a cross-strait war were to occur, the U.S. would possess the most advanced and high-end chip manufacturing processes, leaving Taiwan with nothing to safeguard, Fu contended.

On Monday, Trump implied that the investment would leave the U.S. better equipped to withstand a takeover of Taiwan.

When asked whether TSMC's investment would minimize the impact on the U.S. if China were to isolate or take Taiwan, Trump said it would give the U.S. a "very big part" of the business in the United States.

"So it would have a big impact if something should happen with Taiwan," he said.

KMT lawmaker Wang Hung-wei (王鴻薇) said at a press conference Wednesday that the additional US$100 billion TSMC pledged to invest was more than the central government's total budget for 2025.

She said that while the investment seemed to put Trump at ease, Taiwan's government has yet to explain to its people what Taiwan got in return.

There has been no explanation whether the investment will keep Taiwan exempt from trade wars or how Taiwan will keep its semiconductor advantage after TSMC moves its advanced processes to the U.S., she said.

The Presidential Office promised on Tuesday, however, that the government will ensure that TSMC keeps its most advanced processes in Taiwan.

Economics Minister Kuo Jyh-huei (郭智輝) pledged that TSMC will not allow the 2 nanometer and 1.6 nm processes to go to the U.S. in the near term.

TSMC is currently expected to begin mass production of 2 nm chips in Taiwan in the second half of 2025, followed by 1.6 nm chips in 2026. Its first factory in Arizona is using the 4 nm process.

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Another KMT lawmaker, Ko Chih-en (柯志恩), argued that TSMC is not just a company but an important foundation of Taiwan's international and economic security.

She questioned how TSMC's roots would be able to stay in Taiwan after constructing advanced chip fabs, packaging plants and an R&D center in the U.S.

On Wednesday afternoon, KMT Chairman Eric Chu (朱立倫) echoed those doubts, saying that the U.S. will gain manufacturing skills and talent, while Taiwan will lose its semiconductor manufacturing and development base as well as talent.

He questioned why the ruling Democratic Progressive Party was not willing to stand on the front lines as Taiwan faces an artificial intelligence (AI) war and trade war.

Instead, TSMC was put in the eye of the storm as the DPP was busy pushing for recalls and political conflicts, Chu said.

On Tuesday, the Ministry of Economic Affairs (MOEA) said TSMC's investment plans took into account its long-term competitiveness as well as the demands of global clients.

The move will help strengthen the stability of the global semiconductor supply chain, the ministry said, while expressing its "unwavering" stance to support Taiwan's advanced industries to keep their roots in Taiwan, regardless of how they deploy globally.