President Lai Attempts to Gloss Over Situation, Cannot Hide the Harsh Reality of TSMC's Concessions to the U.S.

United Daily News Commentary, March 7, 2025

Chairman C. C. Wei of the Taiwan Semiconductor Manufacturing Company (TSMC) recently joined President Donald Trump of the United States at the White House to announce an additional $100 billion investment in the United States, bringing the total investment to $165 billion. This move has sparked public concerns that TSMC is turning into "American Semiconductor Manufacturing Company" or even "Trump Semiconductor," leading to fears that Taiwan's "Silicon Shield" may no longer protect the island. In response, President Lai Ching-te held an urgent press conference with Wei on March 6. This had two key purposes: First, to reaffirm the government's presence and emphasize that they were not uninformed beforehand; second, to reassure the public that TSMC is still committed to Taiwan.

When asked whether there was any pressure from the United States regarding TSMC’s increased investment, President Lai gave the standard answer: “No.” However, few are likely to believe this claim.

The reality is that the United States is simply too dominant. When Washington tells TSMC to invest, the company dares not refuse. Not only does it have to build another wafer fab in Arizona, but it also must obediently set up advanced manufacturing processes and research centers. On March 6, Wei repeatedly stated that the expansion in the United States was driven by customer demand, as the current production capacity is "insufficient." However, he assured that this would not affect TSMC’s investments in Taiwan, where the company is proceeding with plans for 11 new production lines.

Wei also explained that the so-called research center in the United States will have about 1,000 employees and is primarily aimed at ensuring the American production line runs smoothly without having to consult Taiwan for every decision. In contrast, the research center in Taiwan has around 10,000 personnel dedicated to developing advanced nodes from 2 nm to 1.6 nm and eventually to 1.0 nm, meaning that Taiwan still retains the core R&D capabilities. These are the two biggest concerns for the public, but whether Taiwan’s investments will truly remain unaffected remains to be seen.

On March 6, President Lai elevated TSMC’s U.S. investment to a historic achievement, quoting historical figure Chiang Wei-shui’s 1921 statement about being "citizens of the world" and making Taiwan "a globally recognized name." He framed TSMC’s U.S. investment as a source of national pride. While the people of Taiwan do take pride in TSMC’s achievements, no one is willing to unconditionally offer their national assets to another country. If this logic holds, then President Volodymyr Zelenskyy of Ukraine might as well hand over Ukraine’s rare earth resources to the United States and claim it as a national honor.

Even though Taiwan’s National Development Fund holds TSMC shares and has a board seat, what can the government really do even if they were aware of these developments in advance? In front of the United States, Taiwan does not even dare to voice an objection. No wonder some online commentators are comparing the situation to Zelenskyy at least having the courage to argue with Trump, even if the outcome remains unchanged.

Is the public overreacting? It’s understandable to think that TSMC's increased investment in the United States means Washington no longer has to worry about Taiwan controlling advanced chips—thus reducing U.S. incentive to protect Taiwan. In reality, this reflects the public’s lack of confidence in the government. When TSMC operates in Taiwan, it’s called the "Silicon Shield" and "Taiwan’s Guardian Mountain." When it moves to the United States, it's suddenly rebranded as "international expansion" and proof that "TSMC is stronger, Taiwan is safer." Does this kind of twisted logic make sense?

To put it simply, as Trump once bluntly told Zelenskyy : "You have no cards." That sums up Taiwan’s situation. Even if TSMC keeps its core R&D in Taiwan, even if setting up the U.S. plant is a challenging process (as seen from past construction delays), cooperating with Mr. Trump at least ensures temporary stability. Since TSMC had no real choice in this matter, it’s clear that its departure was reluctant. The government shouldn’t pretend that the Taiwanese people are happy about it.

The reality is that we are entering an era of outright power struggles. The Office of the President’s press conference, attempting to sugarcoat the situation, does little to mend the disappointment and anxiety of the Taiwanese people.

From: https://vip.udn.com/vip/story/122365/8591678
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