tsmc takeover? taiwan's tech dominance on the line

2025-03-02 tsmc

Taipei, Sunday, 2 March 2025.
a chinese media outlet warns that taiwan’s industrial edge could vanish if tsmc becomes a ‘us-owned’ entity. this concern arises amidst growing geopolitical tensions and us government influence. recent market reactions saw tsmc’s us depositary receipts plummeting, reflecting investor anxiety. experts highlight tsmc’s pivotal role in taiwan’s economy; without it, the taiex could face a significant downturn. public sentiment is largely against us control, with polls showing strong opposition to transferring key technologies stateside. the situation underscores a critical juncture for taiwan’s advanced manufacturing and its ability to navigate us pressures.

us influence and market anxiety

The prospect of tsmc becoming a ‘us-owned’ entity has stirred considerable anxiety in taiwan, particularly concerning the future of its semiconductor industry [1]. This unease is amplified by geopolitical tensions and the perceived influence of the us government [1][4]. Market reactions have been palpable, with tsmc’s american depositary receipts (adr) experiencing a notable drop [1]. On february 27, 2025, tsmc’s adr price fell by 6.95%, marking the ninth day of decline in the preceding ten trading days [1][2]. This market behavior underscores investor apprehension regarding the potential shift in tsmc’s ownership and its broader implications [1].

economic significance of tsmc

Taiwanese financial experts emphasize tsmc’s crucial role in the island’s economic stability [1]. In 2024, the taiex, the taiwan stock exchange capitalization weighted stock index, saw an increase of 28.47%, while tsmc’s stock surged by 81.8% [1][2]. However, analysts suggest that if tsmc’s contribution were excluded, the taiex would have decreased by 2.3% [1][2]. This stark contrast highlights tsmc’s outsized impact on taiwan’s economic performance [1]. The ability to navigate us political pressures in 2025 is viewed as a critical juncture for tsmc and taiwan’s advanced manufacturing sector [1].

public opposition to technology transfer

Public sentiment in taiwan reveals strong opposition to ceding control of tsmc and transferring key technologies to the united states [1]. A poll conducted by the taiwan ‘qisi minben foundation’ on february 24, 2025, indicated that 88.4% of respondents disagreed with the notion that ‘taiwan stole american semiconductor business’ [1][2]. Furthermore, 84.8% opposed the ‘economic department’ of taiwan allowing the transfer of 2-nanometer process technology to the us [1][2]. These figures underscore the public’s concern over the potential erosion of taiwan’s technological advantage and the perceived lack of confidence in the ruling democratic progressive party (dpp) [1].

tsmc’s strategic response and us expansion

In response to increasing pressure from the us, tsmc is reportedly accelerating the establishment of advanced manufacturing processes in the united states [5]. The company plans to commence mass production of a16 angstrom process in taiwan in the second half of 2026 [5][6]. Following this, tsmc intends to introduce the a16 process to its third plant in arizona by 2028 [5]. This strategic move aims to address us policy demands and demonstrate goodwill, while also catering to the needs of us market clients [5][6]. Former us commerce secretary raimondo confirmed that tsmc has agreed to produce a16 chips in arizona [5].

Bronnen

geopolitical risk industrial collapse