TSMC's most advanced technology to remain in Taiwan: Cabinet

Taipei, July 17 (CNA) Taiwan's government said Thursday it will work to ensure that Taiwan Semiconductor Manufacturing Co.'s (TSMC) most advanced technology remains in Taiwan after TSMC announced plans to invest an additional US$100 billion in the United States.

TSMC Chairman C.C. Wei (魏哲家) announced earlier Thursday that the chipmaker would invest an additional US$100 billion in Arizona to build four more advanced wafer and packaging facilities, on top of a previous US$165 billion investment commitment in the state.

The pledge compounded concerns in Taiwan that its edge in advanced semiconductors would be eroded as it invested more abroad, especially as Washington insists that more of the world's semiconductors be manufactured in the U.S.

In a statement, Cabinet spokesperson Michelle Lee (李慧芝) said the government has respected TSMC's gradual expansion of its global footprint in recent years in response to market demand, especially given the rapid growth in artificial intelligence (AI).

But Lee also highlighted Wei's announcement that TSMC planned to build 13 leading-edge and advanced packaging fabs in Taiwan over the next several years, saying it would help ensure Taiwan remains home to most of TSMC's manufacturing capacity and most advanced technology.

She said the government is helping facilitate TSMC's domestic expansion by securing land for future investments and supporting infrastructure such as water, electricity and energy supplies as it prioritizes keeping a complete semiconductor ecosystem in Taiwan.

Lee also said in the statement that foreign companies, including Nvidia, AMD and Micron, were continuing to expand their operations in Taiwan, reflecting confidence in the country's semiconductor industry and supply chain.

Separately, the Ministry of Economic Affairs (MOEA) said the global AI boom is continuing to drive growth in Taiwan's semiconductor industry, with local companies expanding overseas while also increasing investment at home to strengthen their roots in Taiwan.

According to the MOEA, TSMC currently operates 19 advanced process and packaging facilities in Taiwan and is planning to expand its investment in the country, which will help it maintain a much larger advanced process capacity at home than overseas.

The MOEA said it will continue to improve Taiwan's investment environment and support companies' global expansion while strengthening the resilience and competitiveness of the semiconductor supply chain, without providing further details.