President Lai Ching-te Celebrates $100 Billion Commitment Amid Rising Tensions with China
Taiwan’s President Lai Ching-te has hailed Taiwan Semiconductor Manufacturing Company’s (TSMC) plan to invest US$100 billion in the United States as a “historic moment” for relations between Taiwan and the US. The announcement, made on March 6, 2025, follows a series of escalating tensions between Taiwan and the US over chip manufacturing, as well as US President Donald Trump’s threats to impose tariffs on chips made outside the country.
The new investment brings TSMC’s total commitment to the US to US$165 billion, marking the largest foreign direct investment in US history. President Lai made the statement during a joint press conference with TSMC’s Chairman and CEO, C.C. Wei, at Taiwan’s Presidential Office.
The move comes after Trump accused Taiwan of “stealing” the US chip industry and threatened to impose tariffs up to 100% on foreign-made chips. These actions have driven Taiwan to invest more in the US, with TSMC responding by pledging substantial investments to support US demand, particularly from clients like Apple and Nvidia.
TSMC’s investment is part of a broader strategy to address concerns about the vulnerability of Taiwan’s chip production, especially given China’s increasing military pressure on the island. China claims Taiwan as its own territory, and TSMC’s headquarters, along with most of its production plants, are based in Taiwan. The US has urged TSMC to diversify its production locations to reduce potential disruptions in case of conflict.
Wei, during the press conference, emphasized that the investment in the US was driven by strong demand from American clients and would not affect the company’s operations in Taiwan. “We are expanding in the US because the demand from US customers is extremely high,” he explained, noting that TSMC had previously expanded to Japan and Germany in response to local demand.
President Lai noted that every strategic move by TSMC, whether in Taiwan or abroad, strengthens the company’s position globally, making it more competitive and opening up opportunities for Taiwanese businesses to collaborate internationally. He also reassured that TSMC’s “production capacity and advanced technology are rooted in Taiwan.”
Despite concerns that the increased US presence of TSMC could influence Washington’s stance on defending Taiwan against Chinese threats, Premier Cho Jung-tai firmly stated earlier that “TSMC is Taiwan’s TSMC,” reinforcing the company’s crucial role in Taiwan’s economy and security.
This historic investment is expected to further deepen economic ties between Taiwan and the US, and solidify Taiwan’s position as a global leader in semiconductor manufacturing.
