“Of course Taiwan is not stealing the chip industry from the US. The chips we made are commissioned by U.S. companies, which still have the highest gross margin. Trump might have some misunderstanding on such matters, and we will clarify that.” Kuo Jyh-huei, Taiwan’s economy minister
Minister Kuo chalked up the issue to a misunderstanding on Trump’s part which he said will be clarified. When the Republican candidate’s comments were published in July, officials in Taiwan were concerned that if Trump were to regain the presidency, he might not be as committed to defending Taiwan from an attack by China. Beijing says that there is only one China and it isn’t Taiwan. A successful attack on Taiwan would also bring TSMC into that country’s fold.
TSMC is building three U.S. fabs in Arizona. | Image credit-TSMC
Because Taiwan officials fear that Trump bases his actions on transactional relationships, they are concerned that under a second Trump administration, the U.S. will back off pledges made by President Joe Biden to help defend Taiwan from China unless Taiwan pays the U.S. for protection. Trump has actually floated the idea of Taiwan paying the U.S. for protection from China, a suggestion that led Taiwain Premier Cho Jung-tai to say back in July, “It’s our shared responsibility and goal to maintain the peace and stability in the Taiwan Strait and the Indo-Pacific region.”
The second fab is expected to open in 2028 and will produce cutting edge 3nm and 2nm chips. The third factory will be ready at the end of the decade and is expected to churn out 2nm or more cutting-edge chips. When completed, the fabs will be the most technologically advanced semiconductor manufacturing facilities in the U.S.
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