U.S. Unlikely to Match TSMC’s Taiwan Production Capacity, Says Minister

Taipei: The United States is unlikely to match Taiwan Semiconductor Manufacturing Co.'s (TSMC) production capacity in Taiwan despite the chipmaker's expansion in Arizona, Minister of Economic Affairs Kung Ming-hsin said Thursday. Speaking before a ministry meeting Thursday afternoon, Kung emphasized TSMC's significant commitment to its home base.

According to Focus Taiwan, TSMC has already announced plans for a total of 16 fabrication plants and advanced CoWoS packaging facilities in Taiwan. Kung highlighted that no matter how many fabrication plants the U.S. constructs in the future, it will not reach the scale of TSMC's operations in Taiwan.

His remarks followed reports of U.S. President Donald Trump stating that Taiwan was doubling the size of the chip plants under construction in Arizona, with Taiwanese chipmakers like TSMC increasing their investments in the U.S. Trump was quoted by Fox Business saying that TSMC is significantly expanding in Arizona and that the U.S. could control 50 percent of the chip market by the time he leaves office.

When questioned about TSMC's U.S. expansion potentially weakening its status as Taiwan's "silicon shield," Kung asserted that the company's announced plans indicate Taiwan will remain central to its manufacturing operations. He also expressed confidence in TSMC Chairman C.C. Wei's ability to handle any pressure from Washington to invest more aggressively in the U.S.

Earlier on Thursday, Kung addressed the possibility of additional overseas fabrication plants, stating that any such plans should be confirmed directly by TSMC. "Whether TSMC has plans for additional fabs should be based on what the company says," he told reporters.