CC Wei, TSMC's chief executive, announced a historic $100 billion investment in the US alongside Donald Trump, intending to expand TSMC's semiconductor production and avoid looming tariffs. This deal could generate tens of thousands of jobs in the US while securing important technology from Chinese control. However, concerns arise over Taiwan's security; opposition members warn that increased US production may lessen Taiwan's geopolitical significance, weakening US support for Taiwan. The Taiwanese government must approve the investment, which could alter Taiwan's chip industry contribution to its GDP.
TSMC's investment of $100bn in the US could potentially diminish Taiwan's geopolitical leverage, as the U.S. may feel less compelled to support Taiwan.
The $100bn investment is termed the largest foreign direct investment in the US, positioning TSMC strategically against tariff threats and securing tech development away from China.
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