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TSMC spends US$12 billion to set up a plant in the US, sparking concern in Taiwan society

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Update time : 2022-11-05 09:52:34
        According to Taiwanese media reports, TSMC has spent US$12 billion to set up a chip plant in Arizona, USA, and will hold a moving ceremony in early December, sparking concern. Taiwan society generally believes that this is an attempt by the US to improve its local semiconductor chain and get rid of its dependence on Taiwan, and that it will do more harm than good to TSMC's development.
 
 
        According to reports, this is TSMC's largest overseas investment case in recent years and is expected to complete the clean room project and begin assembly in the first quarter of 2023, with mass production starting in 2024. The plant will produce 5nm chips with a monthly output of 20,000 wafers. However, the high price of labour, water and electricity in the US is likely to increase production costs by more than twice.
        The Taiwanese community is concerned that TSMC's move to the US is not in line with its own economic interests, but is more aimed at meeting the strategic needs of the US to grow its own semiconductor manufacturing capabilities and break away from foreign dependence. This move is not conducive to TSMC's own development in the long run and even jeopardizes Taiwan's own security.
        According to Wang Chien-sheng, deputy director of the Chinese Academy of Economic Research under Taiwan's economic department, Taiwan should raise the importance of the semiconductor industry, introduce policies to subsidize, promote and even train talents, set up funds and think comprehensively about the extension of Taiwan's semiconductor value chain.
        According to Wang, semiconductors will account for 34.8% of Taiwan's exports in 2021 and 70% of the total surplus, showing their importance to Taiwan's economy. With the introduction of chip export controls in the US and the start of the layout of local production lines, it is important to pay careful attention to whether TSMC's future orders will be significantly reduced.
        TSMC has a pivotal role in the global semiconductor industry, with its products accounting for more than half of the global market, and is therefore a key target in the "chip war" being actively concocted by the US. Professor Emeritus of Taiwan University, Lin-Cheng Chang, said that the Americans not only have no good intentions, but are also hollowing out Taiwan, wanting to move TSMC to the United States, Japan and Europe, and to poach TSMC's engineers there.
        Stirred by US policies, the global semiconductor industry, including TSMC, is facing a crisis of reduced orders and volatile share prices. TSMC has also recently taken the unprecedented step of encouraging its employees to take leave and its stock price has fallen sharply for a while. However, in the face of such a crisis, the DPP authorities not only have no countermeasures to be led by the nose, but also repeatedly emphasize that "Taiwan's position is irreplaceable", which is considered to be self-deceiving.
 

 
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