TSMC Says "US Investment Expansion Due to Demand" Despite Trump Pressure Controversy

Lai Ching-te: "No U.S. Pressure... Greater Strength for Taiwan"

Wei Zhejia, chairman of Taiwan's TSMC, the world's number one foundry (semiconductor contract manufacturing) company, recently said on the 6th that the decision to invest $100 billion (about 145 trillion won) in the United States was made due to increased demand within the U.S.

According to Taiwanese media such as Central News Agency (CNA) and United Daily News, as well as AFP, Wei stated at a joint press conference with Taiwan President Lai Ching-te held at the Taiwan Presidential Office in the afternoon that the reason for expanding investment in the U.S. was because the current production capacity is "insufficient" compared to the demand from U.S. customers.

This statement clarifies that the investment in the U.S. was not due to pressure from U.S. President Donald Trump. President Trump had said on the 13th of last month, "Taiwan has taken away the U.S. semiconductor industry."

In response, Wei announced on the 3rd that after meeting with President Trump at the White House in Washington D.C., he decided to invest $100 billion in the U.S.

Through this large-scale additional investment, TSMC plans to build three wafer fabs, two packaging plants, and one research and development (R&D) center in the U.S.

AFP Yonhap News

Wei explained again, "We went to Japan because of Japanese customer demand, and we went to Germany because of German customer demand. Four years ago, we went to the U.S. because of U.S. customer demand. Currently, the demand from U.S. customers is very large. Before making this significant investment, we conducted extensive analysis and communicated with all customers."

He continued, "TSMC currently lacks production capacity in the U.S. to meet their (customers') demand. The real main reason for going to the U.S. is because of the customers," emphasizing, "The current production lines are already fully booked, next year they will be even more booked, and the production lines to be built the year after next are also reserved."

Wei also stressed that to meet the increased demand, TSMC plans to build 11 new production lines in Taiwan this year, and that the expanded investment in the U.S. will not affect investment in Taiwan.

President Lai also said at the press conference that "TSMC did not receive any pressure from the U.S. during the process of investing in the U.S." Regarding this investment, Lai described it as "a moment for TSMC and a moment for Taiwan, as well as a historic moment in Taiwan-U.S. relations," emphasizing, "Whenever TSMC moves strategically, TSMC becomes stronger and more competitive, and at the same time, it becomes a greater strength for Taiwan."