US semiconductor capacity will not rival TSMC's Taiwan output: Report
Taipei, July 3
The United States is unlikely to match the Taiwan Semiconductor Manufacturing Co.'s production capacity in Taiwan despite the chipmaker's expansion in Arizona, said Minister of Economic Affairs Kung Ming-hsin, according to a news report by Focus Taiwan.
The statement addresses recent claims regarding the scale of the company's American investments. According to a news report by Focus Taiwan, Kung stated before a ministry meeting that TSMC already announced plans for a total of 16 fabrication plants and advanced CoWoS packaging facilities in Taiwan.
"No matter how many fabs the US builds in the future, it won't be that many," the news report quoted Kung.
The minister's remarks followed comments from the US President Donald Trump, who stated that Taiwan was doubling the size of the chip plants under construction in Arizona and that Taiwanese chipmakers were increasing their investments in the US, Fox Business quoted Trump as saying that the chipmaker is the biggest company in the world.
"But they're coming in, they're building in Arizona, and they just announced they're going to double the size," the news report quoted Trump as saying on Fox Business.
"We could have 50 per cent of the chip market by the time I leave office," he added.
When asked whether the expansion in the US could weaken the company's status as Taiwan's "silicon shield," Kung stated that the announced plans showed Taiwan will remain central to its manufacturing operations.
Questions also arose regarding whether Washington could pressure TSMC to invest more aggressively in the US if the company did not meet the expectations outlined by the American president. Kung expressed confidence in TSMC Chairman C.C. Wei regarding future negotiations.
"I believe Chairman Wei is very wise and will be able to handle the matter appropriately," Kung said.
Earlier in the day, before attending a meeting of the Legislature's Economics Committee, Kung noted that any plans for additional overseas fabs should be confirmed directly by the company itself rather than outside sources.
"Whether TSMC has plans for additional fabs should be based on what the company says," Kung told reporters.
— ANI
Reader Comments
Typical political posturing from both sides. Trump says 50% market share, Taiwan says "no way." Meanwhile, TSMC is just playing both sides - taking US money for Arizona fabs while keeping real capacity in Taiwan. Smart business sense actually. But for India watching this, we should focus on getting our own fabs set up rather than depending on anyone else. Our PLI scheme needs major acceleration! 🇮🇳
I find it amusing how Taiwan's minister is essentially saying "we will keep the crown jewels at home." And he's right - building 16 fabs in Taiwan vs. a handful in Arizona? No contest. The US can throw all the incentives they want but the talent ecosystem and supply chain is deeply entrenched in Taiwan. India should note this - we need to build that kind of ecosystem, not just individual fabs.
As someone who works in semiconductor supply chain logistics, this debate misses the bigger picture. Even if US gets more fabs, the advanced packaging and specialized processes (like CoWoS mentioned) will remain in Taiwan for years. The real bottleneck isn't just fab capacity but the entire ecosystem of suppliers, engineers, and know-how. India should look at becoming a hub for chip design and packaging while we catch up on manufacturing.
Respectfully, I think both sides are playing to their domestic audiences. Trump wants to show "America First" success, Taiwan wants to reassure investors and citizens. The reality? TSMC will likely do what's profitable - expand where it makes sense. But this "silicon shield" concept is concerning - if Taiwan is the only place to make advanced chips, that's a single point of failure for the whole world. India's chip ambitions couldn't come at a better time.
K We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.