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Key Points

TSMC's upcoming investor conference will likely address the US government's proposal for a 50-50 split in semiconductor production between Taiwan and America. Industry expert Liu Pei-chen warns this could force TSMC to shift more advanced chip production to the US, affecting Taiwan's semiconductor development. The company is currently building three advanced wafer fabs in Arizona with $65 billion in investments. Investors will also watch for updates on TSMC's 2-nanometer process and potential forecast upgrades driven by strong AI chip demand.

Key Points: TSMC Investor Conference to Address US 50-50 Chip Production Proposal

  • US Commerce Secretary proposes 50-50 semiconductor production split between Taiwan and United States
  • TSMC investing $65 billion in three Arizona fabs with first production in 2024
  • Taiwan government opposes the production split proposal citing national interests
  • Investors concerned about potential delays in TSMC's Japan and Germany fab projects
  • Company's 2-nanometer process entering production this year driving 2026 growth
  • Strong AI and HPC chip demand may prompt upgraded sales forecasts
3 min read

TSMC investor conference expected to address US '50-50' chip idea: Expert

TSMC faces investor questions about US proposal to split chip production 50-50 between Taiwan and America, potentially impacting global semiconductor supply chain.

"If TSMC's production here contracts, Taiwan's semiconductor development will be impacted - Liu Pei-chen, Taiwan Institute of Economic Research"

New Delhi, October 6

Taiwan Semiconductor Manufacturing Co (TSMC) is expected to address the US government's "50-50" semiconductor production proposal during its upcoming investor conference on Oct. 16, an industry expert said Saturday.

According to a report by Focus Taiwan, Liu Pei-chen, a researcher at the Taiwan Institute of Economic Research (TIER), told CNA that US Commerce Secretary Howard Lutnick's remarks about achieving a 50-50 production split between Taiwan and the United States have drawn significant market attention and raised concerns among investors.

"If the idea is realised, TSMC could be pushed to move more of its advanced chip production to the United States, which would inevitably affect its investment plans in Taiwan," Liu said.

"If TSMC's production here contracts, Taiwan's semiconductor development will be impacted. This deserves a careful response."

Lutnick said in a NewsNation interview that "the conversation we've had with Taiwan [is] that it's vital for you to have us [the U.S.] produce 50 per cent," adding, "The idea that I pitched them [Taiwan] was: let's get to 50-50. We're producing half, you're producing half."

TSMC is currently investing USD 65 billion to build three advanced wafer fabs in Arizona, with the first one expected to begin commercial production in late 2024.

In March, the chipmaker pledged to invest another USD 100 billion in the U.S. state over the next few years to construct three more fabs, two IC assembly plants, and one research and development centre.

On Wednesday, Vice Premier Cheng Li-chiun, Taiwan's lead negotiator on tariffs with Washington, reiterated that the government does not agree with the 50-50 production split proposal.

Liu said that while TSMC has accelerated plans to start production at its second and third fabs in Arizona, some investors are worried that its investments in a second fab in Kumamoto, Japan, and a fab in Germany may be delayed.

She noted that the company is likely to be pressed on these timelines during the investor call.

Investors will also be watching for updates on TSMC's 2-nanometer process, which is scheduled to enter commercial production later this year and is expected to drive revenue growth in 2026.

Major clients, including Advanced Micro Devices Inc and MediaTek Inc have already announced plans to adopt the 2nm process for new devices.

In July, TSMC raised its 2025 sales growth forecast in U.S. dollar terms to 30 per cent, up from 24-26 per cent, citing strong demand for high-end technologies.

Liu said robust global appetite for AI and high-performance computing (HPC) chips could prompt the company to upgrade its forecast again in the investor conference.

- ANI

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Reader Comments

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Priya S
The 50-50 proposal seems like US trying to control global chip supply. Taiwan has built this expertise over decades. Hope this doesn't affect India's plans to partner with TSMC for our semiconductor mission. We need reliable partners.
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Aditya G
While US-Taiwan dynamics are important, I wish Indian media would focus more on our domestic semiconductor progress. We have our own fabs coming up in Gujarat and Karnataka. Let's build our capabilities rather than just watching others.
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Sarah B
The 2nm technology development is crucial for AI and computing. India's tech industry heavily depends on advanced chips for our IT services and startup ecosystem. Any disruption in supply could impact our digital economy growth.
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Nikhil C
$65 billion investment in Arizona shows TSMC's global expansion strategy. India should learn from this and create more attractive policies for semiconductor companies. Our talent pool is strong but we need better infrastructure and faster approvals.
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Kavya N
As someone working in electronics manufacturing, this news makes me nervous. Chip shortages during COVID taught us hard lessons. India needs to become self-reliant in semiconductors - it's a matter of national security and economic growth. 🙏

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