"'Containing China' Taiwan Builds Over 20 Semiconductor Factories Nationwide... Investment Rush"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] It has been reported that more than 20 semiconductor factories are being constructed simultaneously across Taiwan, known as a "semiconductor powerhouse." This is interpreted as a measure to prepare for potential Chinese invasion threats by responding with cutting-edge semiconductors through massive investments exceeding 150 trillion won.

On the 7th, Japan's Nihon Keizai Shimbun reported that Taiwan's semiconductor companies, including TSMC, the world's leading foundry (semiconductor contract manufacturing) company, are building more than 20 new factories throughout Taiwan. The locations are spread from northern to southern Taiwan, with investments totaling 16 trillion yen (approximately 151.5 trillion won).

Nihon Keizai explained, "The factory site area exceeds 2 million square meters, equivalent to 40 Tokyo Domes," adding, "This scale of investment is taking place in Taiwan, which is about the size of Japan's Kyushu region." It also reported, "Although TSMC recently completed four new factories, it is simultaneously constructing new 3-nanometer (nm; 1 nanometer is one-billionth of a meter) factories at four surrounding locations, concentrating its bases."

A worker in his 50s at a TSMC construction site told Nihon Keizai, "They are rushing to complete the factories. Everyone works overtime late into the night, and working on holidays is considered normal," indicating that the factory establishment is proceeding at a rapid pace.

Nihon Keizai viewed that the background for Taiwan's rush to build semiconductor factories lies in China, which insists on the "One China" principle. From Taiwan's perspective, U.S. support is crucial, and in this situation, the only card Taiwan can play on equal footing is semiconductors. Nihon Keizai added that this is why Taiwan refused the U.S. request to build semiconductor manufacturing facilities in the U.S., despite the U.S. urging Taiwan to do so.