TSMC to Hold US Board Meeting Next Week... Aligning with Trump

Concerns in the Semiconductor Industry Over Trump Policies
Taiwanese Minister-Level Official to Attend Board Meeting
TSMC to Review Local Conditions at Arizona Plant

Reuters Yonhap News

The world's largest foundry (semiconductor contract manufacturing) company, Taiwan's TSMC, will hold a board meeting in the United States on the 11th. This is the first time since its establishment in 1987 that the board meeting is held overseas, not in its headquarters location, Taiwan. This move is interpreted as a more proactive response amid growing concerns from semiconductor companies outside the U.S. due to former U.S. President Donald Trump's policy to strengthen American manufacturing.

According to Taiwan local media such as Digitimes on the 6th, the TSMC board meeting will convene in the U.S. to announce the results of senior management promotions and share progress on facility construction. They also plan to discuss legal issues arising from the U.S. local law and employee grievances.

A senior Taiwanese minister-level official is also expected to attend as a board member. According to earlier foreign media reports, Liu Jingqing, the Chairman (minister-level) of Taiwan's National Development Council (NDC) and a TSMC board member, is also expected to attend the meeting. This reflects the characteristic of TSMC as a Taiwanese public enterprise.

This meeting is an important event demonstrating TSMC's commitment to its U.S. business. In particular, it is interpreted as an effort to emphasize that the semiconductor factory under construction in Arizona plays a key role in the U.S. semiconductor manufacturing ecosystem. The Taiwanese Minxi newspaper reported, "It appears that the board members are holding the meeting in the U.S. to directly visit and gain a more practical understanding of TSMC's local operations."

The Arizona plant is TSMC's "sore spot." Although the plan to build the Arizona plant was announced in May 2020, it has not been completed even after four years. Of the total three plants, only part of the first plant is currently operating on a trial basis. The New York Times (NYT), through interviews with 12 TSMC employees, pointed out that there are cultural clashes between Taiwanese managers and American workers.

The second Trump administration aims to revitalize domestic manufacturing through tariffs. This plan intends to strengthen industrial competitiveness and create jobs. In this process, there is also a possibility of expanding regulations to strengthen policies favoring American industries and Americans.

Meanwhile, the last official TSMC board meeting was held on November 12 last year. They approved the business report and financial statements for the third quarter of 2024 and also resolved the third-quarter cash dividend. The consolidated sales for the third quarter of last year totaled NT$759.69 billion, with a net profit of NT$325.26 billion.