In response to TSMC's $100 billion investment in the United States, the Taiwanese government stated that it would 'keep cutting-edge technology in Taiwan,' and some pointed out that 'Taiwan without advanced semiconductor technology is like Ukraine without nuclear weapons.'
Taiwanese semiconductor company TSMC's announcement that it would invest an additional $100 billion (approximately 15 trillion yen) in the United States has sparked concerns in Taiwan that the move could undermine national interests. In response, a Taiwanese government spokesman said, 'We will not transfer all of our cutting-edge technology to the United States, and we will maintain cutting-edge technology domestically,' asking for understanding.
Taiwan vows most advanced tech will not go to US under $100bn Trump deal | Technology sector | The Guardian
On March 3, 2025, TSMC and US President Donald Trump jointly announced a plan to 'invest at least $100 billion in additional semiconductor manufacturing plants in the US over the next few years and build five semiconductor factories.' Trump's intention is to strengthen the country's semiconductor manufacturing capabilities, while TSMC's aim is to decentralize its production system, which is concentrated in Taiwan, making this a beneficial deal for both the US and TSMC.
President Trump announces that TSMC will invest 15 trillion yen in US semiconductor factories - GIGAZINE
By Li Jilin
However, the deal has raised concerns within Taiwan, mainly from the opposition party.
TSMC is one of the world's largest semiconductor manufacturers and the backbone of Taiwan's economy. Taiwan is home to many other semiconductor companies, and the semiconductor industry is often called Taiwan's 'silicon shield.' There is a view that by keeping this technology domestically, Taiwan can lobby the United States and its allies to protect Taiwan from Chinese aggression.
However, if cutting-edge technology were to be transferred to other countries, there is a risk that other countries would no longer have a reason to view Taiwan as special. James Yifan Chen, an associate professor of foreign affairs at Tamkang University in Taiwan, pointed out that 'Taiwan without semiconductors or high-tech industries is like Ukraine without nuclear weapons,' and argued that Taiwan should hold on to its trump card.
In response to this matter, Taiwanese government spokesperson Karen Kuo said, 'We guarantee to maintain cutting-edge manufacturing processes in Taiwan,' and asked for understanding.
According to a government statement, at the time the deal was announced, TSMC had not yet applied for the government approval required for an overseas investment of this scale, but Taiwan's Minister of Economic Affairs
The main opposition party, the Taiwan Kuomintang, has pointed out that if T (Taiwan) SMC becomes A (American) SMC and the sacred mountain that protects Taiwan is gone, what will become of Taiwan's national security? The more TSMC produces in the United States, the less Taiwan's geopolitical importance will decline, and the less incentive the United States will have to assist Taiwan in the future.
Meanwhile, Taiwan's Defense Minister Wellington Koo said, 'I am confident that the United States will not abandon Taiwan. The rapid and strange changes in the international situation have raised questions about President Trump's intentions, but whether from the perspective of economic growth, political views, or security, I believe it is impossible for the United States to withdraw from the Indo-Pacific, because the region is in America's interest.' He expressed the view that 'the cost of a war with Taiwan would be too high for the United States to tolerate.'
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