TSMC’s $100 Billion U.S. Investment Fuels Concerns Over Taiwan’s Chip Dominance

The semiconductor giant’s expansion in Arizona has sparked fears of a technology transfer and geopolitical risks for Taiwan.

TSMC has pledged a $100 billion investment in the U.S., adding three new semiconductor plants, two packaging facilities, and an R&D center in Arizona.
Taiwanese officials and opposition parties worry the move could erode the island’s chip industry dominance and weaken its 'silicon shield' against China.
TSMC insists cutting-edge chip production and core R&D will remain in Taiwan, with U.S. facilities focusing on older generation technologies.
The investment follows threats of steep tariffs from the Trump administration, though TSMC and Taiwan’s government deny U.S. pressure influenced the decision.
Analysts believe Taiwan will retain its central role in advanced chip production, as the U.S. facilities are expected to lag behind in cutting-edge capabilities.