ISSUE 285                                                                                                March 10, 2025
TSMC Increases U.S. Investment
● This Week in Taiwan: 
Other Important Events This Week 




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To prevent TSMC from becoming the "American Semiconductor Manufacturing Company," President Lai Ching-te held a joint press conference with TSMC, but it merely served to gloss over the situation and failed to regain the trust of a disheartened public.
Featured Commentary

President Lai Attempts to Gloss Over Situation, Cannot Hide the Harsh Reality of TSMC's Concessions to the U.S.

 

In just 60 hours, Chairman C. C. Wei of the Taiwan Semiconductor Manufacturing Company (TSMC) held press conferences accompanied by two presidents. As President Donald Trump of the United States remarked earlier at a White House press briefing, "No one has done what he has. He is truly a legend." Indeed, Wei  has created a legendary chapter in the history of the global semiconductor industry.

Featured Commentary
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Under continuous American pressure, Chairman C. C. Wei of the Taiwan Semiconductor Manufacturing Company (TSMC) has frequently visited the United States, handling external matters with caution.

Over Past Quarter, Wei Frequently Visited the U.S., Cautiously Responding to Trump.

 

Chairman C. C. Wei of the Taiwan Semiconductor Manufacturing Company (TSMC) recently joined President Donald Trump of the United States at the White House to announce an additional $100 billion investment in the United States, bringing the total investment to $165 billion. This move has sparked public concerns that TSMC is turning into "American Semiconductor Manufacturing Company" or even "Trump Semiconductor," leading to fears that Taiwan's "Silicon Shield" may no longer protect the island. In response, President Lai Ching-te held an urgent press conference with Liu on March 6. This had two key purposes: First, to reaffirm the government's presence and emphasize that they were not uninformed beforehand; second, to reassure the public that TSMC is still committed to Taiwan.

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The severity of Taiwan's shortage of military personnel and resources is no less critical than Ukraine's, yet the Democratic Progressive Party (DPP) administration continues to divert attention by accusing the opposition of cutting the national defense budget.

Lai Administration's Defense Budget Fails to Address Inadequate Military Personnel

 

President Donald Trump of the United States warned Ukrainian President Volodymyr Zelenskyy that he has no right to criticize the United States, citing Ukraine's shortage of military personnel as one reason. U.S. Vice President J.D. Vance echoed this sentiment, pointing out that Ukraine is forcing conscripted soldiers to the front lines, revealing a severe manpower issue. The saying "Ukraine Today, Taiwan Tomorrow" underscores Taiwan’s own severe shortage of military personnel, a problem no less critical than Ukraine’s.

This Week in Taiwan
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In response to the DPP's all-out recall initiative, former president Chen Shui-bian stated that politics is the art of high-level compromise, and no one can monopolize the world.

March 1:
The Democratic Progressive Party (DPP) initiated a major recall against Kuomintang (KMT) legislators. Former President Chen Shui-bian warned that mutual recalls would never end. In the past, he faced the dilemma of a small ruling party amid a large opposition, but the political situation was not as confrontational as it is now. According to Chen, the world is vast and cannot be monopolized; politics is the art of high compromise. Former Vice President Annette Lu also reminded that all-out recalls are not beneficial to the country and urged President Lai Ching-te to elevate himself to act as the president for all people and not intervene in this matter.

 

March 1:

According to the United Daily News, the Taiwan Semiconductor Manufacturing Company (TSMC) recently announced significant changes to the process planning of its Arizona plant, adjusting the third plant, originally planned for the 2 nm process, to 1.6 nm (internally called A16). This move indicates that TSMC will accelerate the advancement of its processes in the United States to alleviate pressure from President Donald Trump.

 

March 1: 

Multiple Japanese media outlets reported that the Japan Maritime Self-Defense Force destroyer Akizuki crossed the Taiwan Strait in early February to participate in a joint military exercise with the United States, Australia, and the Philippines in the South China Sea. This is the first time that the Self-Defense Force has independently passed through the Taiwan Strait. Japanese media analyzed that this move seems to be aimed at countering the increased military pressure from mainland China around Japan and Taiwan. In September last year, the Japanese destroyer Sazanami crossed the Taiwan Strait with Australian and New Zealand naval vessels, sparking protests from China.

 

March 2:

According to the Department of Investment Review, Ministry of Economic Affairs, in 2024, Taiwan approved 117 investment cases in the United States, an annual increase of 30 percent, with approved investment amounts reaching a record high of $14.1 billion, an annual increase of 45.7 percent. TSMC's investment in the United States alone accounted for $12.5 billion. Other major investment destinatiosn include Japan, with $5.4 billion, a 24-fold increase, mainly due to TSMC's capital increase in its Kumamoto plant; and Singapore, with $5.8 billion, an increase of 138.1 percent.


March 4:

In the presence of U.S. President Donald Trump, TSMC Chairman C. C. Wei announced at the White House that in addition to the previously announced $65 billion investment, TSMC will increase its investment in the United States by $100 billion over the next four years to build three wafer fabs, two advanced packaging plants, and a research and development center. This expanded investment project is the largest single foreign direct investment in American history. Mr. Trump even stated that if something happens in Taiwan, the United States will have significant influence. Wei returned to Taiwan the next day and held a press conference with President Lai, refuting American pressure. Wei stated that investing in the United States is in response to customer demand and emphasized that the construction of 11 production lines in Taiwan is still proceeding as planned. As for whether the expanded investment has received American subsidy commitments, Wei said that TSMC is not afraid of competition and only seeks fairness.

 

March 04: 

The government has recently been busy "crafting draft dodgers," and well-known artist Darren Wang was also interviewed by the police for evading military service. Opposition party legislators have repeatedly questioned the issue of military service by President Lai's son in public. Minister of National Defense Wellington Koo stated that he is unaware of the situation, while Premier Cho Jung-tai responded that the legislators were hurting the people's feelings. President Lai has yet to explain.

 

March 4:

The Ministry of Civil Service recently cooperated with the Mainland Affairs Council (MAC) to issue a letter to all government agencies, requiring civil servants to declare that they should not hold mainland Chinese identity cards, residence permits, or residence certificates. Scholars believe that this move by the MAC is controversial constitutionally because according to the Constitution, Taiwan should not recognize People's Republic of China nationality, and therefore has no reason to interfere with the people and public officials. The MAC may also have overreached in terms of its administrative discretion, scholars say.

 

March 6:

Memory chip giant Micron announced a major personnel appointment, naming former TSMC Chairman Mark Liu as a new member of the board of directors, relying on his extensive semiconductor manufacturing and corporate leadership experience to promote Micron's long-term development in the memory and storage market. In recent years, TSMC and Micron have closely cooperated, and it is widely believed that this move will help promote close cooperation between the two companies.

Published since 2019 by the Fair Winds Foundation and Association of Foreign Relations, Taiwan Weekly provides in-depth report and analysis of the major issues facing Taiwan.

The conclusions and recommendations of any Taiwan Weekly article are solely those of its author(s) and do not reflect the views of the institutions that publish the newsletter.


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