TSMC’s $100 Billion Made In America Plan Will Need Economic Ministry’s Approval, Says Minister

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The Taiwan Semiconductor Manufacturing Company (TSNC) will not be allowed to invest in the US if its investment threatens the island’s national security or economic development, says Economic Minister J. W. Kuo. Kuo made the remarks in a session of the Taiwanese parliament, the Legislative Yuan. Kuo’s ministry is responsible for approving all of TSMC’s investments. The Taiwanese firm made headlines earlier this month after its management appeared with President Trump in the White House to announce a $100 billion investment in US chip manufacturing. The investment was in addition to the $65 billion that the firm plans to spend to build a sprawling chip manufacturing campus in Arizona.
TSMC’s US Investment Is Subject To Review By Investment Committee, Says Economy Minister
Minister Kuo commented on TSMC’s US investment plans during a session of Taiwan’s legislature in response to a question from a member of Taiwan’s ruling party, the Democratic People’s Party (DPP). DPP lawmaker Chen Ting-fei and an opposition member asked Kuo whether he knew about TSMC’s latest investment initiative in the US before the firm announced it earlier this month.
Kuo has faced criticism earlier for purportedly being unaware of TSMC’s investment plans. In an interview earlier this month, the minister had commented that he was unaware of the $100 billion announcement before TSMC management unveiled it with President Trump at the White House. His remarks had drawn criticism from the opposition party, which demanded that he step down if he had any conflicts of interest in evaluating the deal.
This time around, Minister Kuo remarked that all government agencies were aware of TSMC’s plans. However, he was unable to recall the investment amount earlier which led to the uproar in the Legislative Yuan. He added that his comments were taken out of context which led to distorted reports about the matter.
This time around, Minister Kuo remarked that all government agencies were aware of TSMC’s plans. However, he was unable to recall the investment amount earlier, which led to an uproar in the Legislative Yuan. He added that his comments were taken out of context, which led to distorted reports about the matter.
According to Kuo, Taiwan’s National Security Council, the Executive Yuan and his ministry will evaluate TSMC’s US investment. He said that specifically for the Economic Ministry, its Investment Review Committee will evaluate the deal.
The minister was also asked about reports of TSMC investing in beleaguered US chip manufacturing giant Intel. Intel’s stock soared earlier this year after numerous reports claimed that TSMC would invest in the firm in one form or another. Commenting on these reports, he outlined that as TSMC had not confirmed them, his ministry would refrain from commenting on market rumors.
Kuo also shared that the ‘N-1’ restriction on TSMC, which prevents it from setting up plants with the latest manufacturing processes overseas, is natural. He believes that the restrictions are standard business operating procedures as the latest chip manufacturing technologies are likely to be problematic during early phases. As a result, as firms want to generate maximum profits from their overseas investments, they are likely to prefer stable manufacturing technologies.
Specifically for the $100 billion investment, Kuo shared that adverse impacts on Taiwan’s economic development, conformity with international trade agreements, IP infringement, labor violations or labor-management disputes will be used to evaluate it. He added that the deal would not be cleared if it violated any one of these parameters.