Concerns Raised Over TSMC's $100 Billion US Investment as "ASMC Della"

Concerns Over Potential U.S. Antitrust Investigation
and Possible TSMC Split

Concerns have been raised about the potential Americanization of TSMC, the world's number one foundry (semiconductor contract manufacturing) company, following its recent decision to invest $100 billion in the United States.

According to Taiwanese media including China Times on the 9th, Lin Weizi, former Vice President of Strategy at Taiwan's Foxconn (Hon Hai Precision Industry) and Executive Vice President of the Zhifu Industrial Trend Research Institute, suggested the possibility of TSMC splitting into an independent company within the U.S. as one such scenario.

Lin explained that after the 2020 presidential election, with the second Trump administration effectively confirmed and the Republican Party controlling both the House and Senate, there was a scenario involving pressure on TSMC to split. He also raised the possibility that the U.S. might use an "antitrust investigation" card.

He further mentioned that foreign investors holding 72% of TSMC shares might be required to sell government-held shares to the private sector, and that the TSMC board could be formed under the leadership of American shareholders who purchase those sold shares. According to Taiwanese media, as of April last year, TSMC’s shareholder composition was 6.68% government agencies, 4.61% financial institutions, 4.48% other corporations, 72.06% foreign institutions and foreigners, and 12.17% individuals.

Regarding the possibility of TSMC splitting, four reasons were cited: U.S. government suspicions about market monopoly, national security demands for localization of core technologies and supply chains, the intensifying U.S.-China science and technology war, and lobbying by semiconductor industry players such as Intel who desire a division of TSMC’s operations in the U.S.

Lian Shengyuan, Vice Chairman of Taiwan’s main opposition Kuomintang and son of Kuomintang honorary chairman Lien Chan, also stated that the U.S. aims to transform Taiwan’s TSMC into ASMC. He expressed concern that the simplest way to achieve this would be through a "spin-off" (corporate split).

Meanwhile, Taiwanese media reported, citing sources, that on the 8th of next month, a collective lawsuit hearing will be held at a federal court in California regarding claims by former and current employees at TSMC’s Phoenix, U.S. plant who allege discriminatory treatment.

The plaintiffs, initially 13 but now increased to 30, claim that the company deliberately withheld information and training from "non-East Asian, non-Taiwanese, Chinese employees" and imposed stricter evaluations to block their promotions. TSMC denied these allegations, stating that the claims are unfounded.