TAIPEI (Taiwan News) — KMT caucus leader Fu Kun-chi (傅崐萁) clashed with Premier Cho Jung-tai (卓榮泰) on Tuesday over the government's position on TSMC's US$100 billion (NT$3.2 trillion) investment in the United States.
Fu questioned the government’s decision to expand TSMC’s advanced semiconductor manufacturing process abroad, suggesting that this could have national security implications and undermine Taiwan's “Silicon Shield,” per CNA. He raised concerns that such an action could weaken Taiwan's strategic position.
In response, Cho emphasized that the government could not dictate how private companies operate. He added that the Ministry of Economic Affairs’ Department of Investment Review would assess major investments.
He also reiterated that the government’s policy has prioritized maintaining Taiwan’s lead in major technological sectors and supporting the expansion of Taiwanese businesses. Cho stressed that Taiwan should remain at the center of the global supply chain.
However, Fu insisted that TSMC’s role as Taiwan’s “Silicon Shield” made it critical for the company to keep its advanced manufacturing capabilities in the country. Cho countered by questioning whether Fu was speaking on behalf of the central government, referencing an alleged comment Fu made in Hong Kong.
Fu clarified that he represented the Legislative Yuan, while Cho stated that the central government supports Taiwanese corporations' ventures abroad.
Other KMT members, both current and former officials, have voiced opposition to TSMC’s US investment. DPP Legislator Ho Hsin-chun (何欣純) pointed out, on March 4, former President Ma Ying-jeou’s (馬英九) call to safeguard Taiwan’s critical industries, per CNA.
Cho argued that Ma’s concerns reflected the priorities of his era, suggesting that the current focus should be on expanding Taiwanese industries. Ho also criticized Ma for not doing enough to protect Taiwanese industry, and Cho agreed, noting excessive Taiwanese investment in China during Ma’s presidency.
KMT Taipei City Councilor Chung Hsiao-ping (鍾小平) on Monday questioned why TSMC’s investment proceeded without the Department of Investment Review, per UDN. He criticized the government’s stance toward the US, alleging Taiwan had complied with demands from the Trump administration.
Economics Minister Kuo Jyh-huei (郭智輝) addressed the TSMC investment during a Friday interview with Commercial Times, stating that TSMC had not consulted with him directly and that the investment had not yet gone through formal government review. A ministry official later clarified that TSMC had discussed the project with the government before the announcement, and the review process had not yet begun because TSMC had not formally finalized the decision.
Kuo stressed that, when making investments in the US, a company like TSMC was more concerned with being treated fairly than other considerations.
