tsmc's balancing act: taiwan tech vs. us expansion

2025-03-11 tsmc

taipei, Tuesday, 11 March 2025.
tsmc faces mounting pressure to keep its cutting-edge chip tech in taiwan, despite a massive $100 billion investment in the u.s. concerns are growing about taiwan’s strategic advantages and security. a recent poll reveals that nearly 85% of taiwanese citizens oppose transferring advanced tech to the u.s. this is fueled by fears of losing their competitive edge and overall economic impact. tsmc’s february revenue surged by 43%.

stock performance and market overview

Taiwan Semiconductor Manufacturing Co. (TSM) is listed on the NYSE [1]. As of today, the stock is trading at $169.00, showing an increase of 0.97% [3]. TSMC engages in manufacturing and selling integrated circuits and wafer semiconductor devices [1]. These chips power various devices, including computers, communication systems, and consumer electronics [1]. The company’s headquarters are in Hsinchu, Taiwan [1]. TSMC’s products are integral to the functioning of modern technology [GPT].

geopolitical concerns and taiwan’s role

Concerns are rising in Taiwan regarding the relocation of advanced technologies to the U.S. [2]. A recent poll indicated that 88.4% of Taiwanese citizens disagree with the notion that Taiwan is stealing chip business [2]. Furthermore, 84.8% oppose transferring advanced 2-nanometer processes to the U.S. [2]. This reflects worries about losing technological advantages and impacting Taiwan’s economic future [2]. Some experts suggest that Taiwan’s ‘silicon shield’ could diminish if TSMC’s capabilities are distributed [7].

u.s. expansion and strategic implications

TSMC is significantly expanding its U.S. presence with a total investment reaching $165 billion [5]. This includes constructing three new wafer fabs and two advanced packaging plants in Arizona [7]. The first fab is expected to begin production in the first half of 2025 [alert! ‘source does not specify the exact date, only that it is expected in the first half of the year’]. This expansion aims to secure access to advanced semiconductors, deemed a strategic move by many [5]. Former U.S. President Trump stated this would give the U.S. an advantage in this critical industry [5].

domestic reactions and political debate

Taiwanese media figure Zhao Shao-kang has questioned whether TSMC’s increased U.S. investment was approved by the government [6]. He also raised concerns about transferring core technology and R&D to the U.S. [6]. Some critics view TSMC’s actions as ‘selling out’ Taiwan’s interests [2]. Concerns have been raised regarding the potential for the U.S. to exploit TSMC’s technology, potentially benefiting companies like Intel [7]. The debate highlights the tension between economic opportunities and national security [GPT].

expert opinions on tsmc’s strategy

Experts hold diverging views on TSMC’s expansion. One perspective suggests that maintaining advanced technology leadership in Taiwan is crucial for the region’s security [7]. Conversely, some argue that TSMC’s global presence is a necessary adaptation to market demands [7]. They also believe that the company’s technological edge and fair competition can mitigate risks [7]. TSMC’s chairman, Wei Zhejia, has emphasized that investments in Taiwan will continue, with plans to build 11 new production lines [7].

Bronnen

chip security tsmc taiwan