TAIPEI (Taiwan News) — The government could prevent TSMC’s planned NT$3.29 trillion (US$100 billion) investment in the US if it poses a security risk to Taiwan, Economics Minister Kuo Jyh-huei (郭智輝) said on Thursday.
Taiwanese companies seeking to invest more than NT$1.5 billion overseas must apply to the economics ministry for approval. The ministry can reject the application if it believes the investment will negatively affect national security, economic development, and in some other circumstances.
Speaking in the legislature, Kuo said the economics ministry would not approve the TSMC plan if it met any of these criteria, per SETN. He said his ministry, the president, National Security Council, Cabinet, and other government agencies are reviewing the investment and each is scrutinizing different elements.
KMT Legislator Lai Shyh-bao (賴士葆) asked if TSMC’s planned US investment means it will become a US company. Kuo repeated that this would not happen, labeling it “impossible.”
KMT Legislator Chang Chia-chun (張嘉郡) asked Kuo about a government policy that prevents Taiwan’s most advanced semiconductor technology from being used in China and whether it applies to the US. Kuo said technologically, Taiwan will remain one generation ahead of overseas investments.
Kuo added that companies will self-impose measures to avoid risks. “They will not move their most advanced processes abroad,” he said.
TSMC plans to mass produce 2 nm chips in Taiwan at its Hsinchu and Kaohsiung fabs this year. The company expects its most advanced 1.6 nm chips to enter production in Taiwan next year.
DPP and KMT legislators also asked Kuo if he knew about TSMC’s investment plan before it was announced. Kuo said “all government agencies” knew, but he could not speak freely when reporters asked him about it on the day.
Kuo added that he did not know how much would be invested ahead of time. After the March 4 announcement, Kuo said the economics ministry had some knowledge of the plan.
President Lai Ching-te (賴清德) touted TSMC’s US investment plans during a meeting with US officials on Wednesday. Two days after the announcement, Lai met with TSMC CEO C.C. Wei (魏哲家) and said every strategic move by the company creates opportunities for Taiwanese suppliers to expand internationally.
At the meeting, Wei said TSMC’s R&D would mostly remain in Taiwan. Meanwhile, Taiwanese analysts have said TSMC’s new investment would not significantly weaken Taiwan’s advantage.
Former and current opposition officials have attacked the plan. Last week, KMT caucus leader Fu Kun-chi (傅崐萁) suggested the investment plan would weaken Taiwan’s “silicon shield.”
The investment announcement increased TSMC’s planned US spending to US$165 billion. Wei said the new investment will see three more chip fabs, two advanced packaging facilities, and an R&D center built in Arizona.
The first manufacturing facility built with TSMC's initial US$65 billion investment in Arizona began producing 4 nm technology last year, and the second is expected to produce 3 nm semiconductors in 2028. A third fab will produce 2 nm or more advanced chips by the end of the decade, according to TSMC.
