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US, Japan bases of Taiwan chip giant TSMC spark worries over island’s No 1 status on semiconductors
- TSMC’s US$12 billion Arizona plant and US$7 billion Sony joint venture in Kyushu have prompted fears over the hollowing out of Taiwan’s chip industry
- Analysts support moving some operations overseas to protect global supply chains from cross-strait risks and fallout of the US-China tech war
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Lawrence Chungin Taipei
As Taiwanese chip maker TSMC ramps up production bases in the US and Japan to hedge against rising geopolitical risks, it has sparked worries back home about Taiwan’s position as the global semiconductor bastion.
But observers say it is necessary for Taiwan Semiconductor Manufacturing Co (TSMC) to move some of its operations overseas, to secure global supply chains in the face of a potential cross-strait conflict and the spillover effect of the US-China tech war.
This week, the world’s largest contract chip maker will hold a tool-in ceremony for its US$12 billion plant in Phoenix, Arizona.
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US President Joe Biden will attend Tuesday’s ceremony, to promote his administration’s push to boost chip production in the United States, according to the White House.
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AI chip maker ordered by US government to halt exports to China
AI chip maker ordered by US government to halt exports to China
The Phoenix plant had been in the works since last year, after being announced in May 2020 – in line with Biden’s predecessor Donald Trump’s call for the global tech supply chain to relocate to the US.
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