Overview

• Taiwan Semiconductor Manufacturing Company (TSMC) has announced a $100 billion investment in U.S. semiconductor facilities, including additional plants and a research center in Arizona.
• President Trump credited the investment to his tariff threats, though TSMC and Taiwan's government maintain it was driven by strong customer demand from companies like Apple and Nvidia.
• Taiwanese leaders and opposition parties have expressed concerns that the move could weaken Taiwan’s geopolitical leverage, often referred to as its 'silicon shield,' against potential Chinese aggression.
• TSMC clarified that cutting-edge chip production and research will remain in Taiwan, with U.S. facilities focusing on slightly older manufacturing processes.
• Analysts believe Taiwan will remain central to advanced semiconductor production, as the U.S. facilities are unlikely to match Taiwan’s capacity or technological sophistication in the near term.