International media outlets including CNN, Deutsche Welle (DW), and Le Figaro extensively quoted DSET Deputy Director of Economic Security Min-Yen Chiang this week regarding the implications of TSMC’s expanded investment in the United States.
Last week, President Lai Ching-te and TSMC CEO C. C. Wei jointly held a press conference to explain the investment. President Lai stated that Taiwan “did not face any pressure from Washington,” while the TSMC CEO emphasized that this investment was made to meet “strong demand” from customers.
CNN: Taiwan’s Security Not Solely Dependent on Semiconductor Industry
Addressing whether this investment weakens Taiwan’s security, Chiang analyzed that China’s decision to take military action against Taiwan and allies’ willingness to defend Taiwan still depend on their respective geopolitical core interests, not solely on Taiwan’s semiconductor industry.
“Whether China takes military action against Taiwan is ultimately driven by its core interests, which are not solely dependent on the island’s role in global chip production,” said Min-yen Chiang, a nonresident fellow at the Research Institute for Democracy, Society, and Emerging Technology, a national think tank in Taipei.
He referenced the time in 1950 when the US sent its Seventh Fleet to the Taiwan Strait early on during the Korean War to deter China from invading Taiwan. “Taiwan then had no semiconductor industry at all,” he said.
Deutsche Welle (DW): Strategic Considerations Behind TSMC’s Expanded US Investment
DW focused on the benefits of TSMC’s investment. Chiang Min-yen told DW that, although TSMC’s move was “not entirely the most economically rational choice,” it was a “necessary adjustment in response to global tech geopolitics.”
Regarding concerns about “Taiwan losing critical technology,” Chiang said that, even with overseas expansion, Taiwan-based semiconductor production would remain dominant for the foreseeable future.
“Based on the current construction process in the US, even if technology advances to 2-nanometer chips, completion is expected between 2027 and 2028. Meanwhile, Taiwan has accumulated decades of experience with continuous technological advancements,” he said.
“The idea of the most advanced technology being transferred is not feasible,” Chiang said. On Trump’s tariff measures, DW summarized various analysts’ opinions, stating that even after TSMC’s investment expansion, Taiwanese semiconductor companies could still face new rounds of tariffs, which Trump is expected to announce on April 2. But the direct impact on TSMC may be limited.
“The US doesn’t directly import many chips from Taiwan — it mostly imports finished electronic products, like cars and consumer electronics,” Chiang said.
Overall, regarding future developments with the new Trump administration, Chiang warned that Taiwan must remain “critical” of Trump’s next moves and actively engage in negotiations based on mutual security and interests.
“Whether it’s Biden’s CHIPS and Science Act or Trump’s policies, both aim to expand US domestic manufacturing,” he said, referring to a law signed by the former president that provides government subsidies for chipmaking on US soil. Chiang also urged Taiwan to ask itself: “What kind of chip supply chain strategy best serves its own interest?”
Le Figaro: Global Capacity Demands Support TSMC’s Investment
In an interview with France’s Le Figaro, Chiang noted: “C. C. Wei has repeatedly stated that its US customers support the company’s investments in the development of its US plants, as today’s global production capacity remains largely inadequate and market demand is high.”
He added that besides building factories in the US, TSMC is also expanding its empire in Germany and Japan. Recently, the Presidential Office responded that overseas investments by companies must be reviewed by the government to ensure the most advanced processes remain in Taiwan.