Hong Kong/Taipei
CNN — It was a surprise ceremony at the White House presided over by President Donald Trump to unveil a $100 billion investment from what he called the world’s most powerful company, Taiwan Semiconductor Manufacturing Company (TSMC). But nearly 8,000 miles away, the mood was far from celebratory. Instead, the shock announcement last week has reignited fears in Taiwan about losing its crown jewel, its world-beating semiconductor industry, to the US due to political pressure.The island democracy’s former President Ma Ying-jeou wasted no time in accusing the ruling Democratic Progressive Party (DPP) of “selling TSMC” to Trump as a “protection fee.” … For many on the self-governing island, the phrase “Ukraine today, Taiwan tomorrow” has increasingly resonated in recent weeks as they watch Trump upend longstanding US policy by playing up Kremlin rhetoric and warming to Moscow, while alienating traditional European allies and Kyiv. …
“China’s ruling Communist Party claims Taiwan as part of its territory despite having never controlled it and has vowed to take control of the self-governing island, by force if necessary. Beijing has in recent years escalated its military activities around Taiwan, regularly flying fighter jets and conducting exercises in waters near the island.”
Given the geopolitical risks from mainland China, there is something to be said for Taiwan Semi to geographically diversify its production.
DB2
Given the geopolitical risks from Trump not standing up with the United States allies, there is something to be said for Taiwan Semi to geographically diversify its production. But it would probably be better if they built in Canada or Mexico.
US lacking defense industrial production capability has failed Taiwan along with Ukraine.
https://www.politico.com/news/2024/04/17/taiwan-weapons-backlog-00152000
Lawmakers in both parties have joined forces in a new push to speed up weapons deliveries to Taiwan as the island nation suffers from a years-long, $19 billion backlog of U.S. systems.
The lawmakers, who are wary of China’s aggressive moves in the region, want to allow Taiwan to build some U.S.-designed systems themselves under license in a bid to unclog the pipeline for fighter jets, tanks, drones and missiles.
But the US is Taiwan’s #1 market, now surpassing the PRC. If they’re worried about tariff barriers then it would be better to be inside the US.
DB2
Do you really think that tariffs will have any affect on TSM? Or do you think it will affect the AI players and all the chip companies? TSM really doesn’t have any competition. Who you would be throwing the Tariffs on would be the NVDA and AMD’s of the world.
Not much, but the OP article mentioned the Taiwan Semi is going to spend $100 billion on plants in the US, something started after the CHIPS act. I makes no sense to me that TSM would build the plants in Mexico.
The article said some in Taiwan were afraid of ‘losing their crown jewels’. It would be more realistic of them to fear losing them in an action by the People’s Liberation Army and the People’s Liberation Army Navy.
DB2
Cheaper labor and a Government that is more stable. That would be two reasons.
Yep they are afraid that Trump will steal the technology. I can understand that. It makes perfect sense.
That, but even more because all tech starts as “crown jewels”, and then through the wondrous processes of technological improvement, all tech ends as last half decade’s “garbage paste jewels”.