Despite US Expansion, Taiwan Semiconductor Reaffirms Commitment To Home Base With New Initiatives: Reuters

Taiwan Semiconductor Manufacturing Co TSM told Reuters on Monday that it will look for space to expand investments in Taiwan, easing concerns over the growing focus on U.S. appeasement taking a toll on its domestic ambitions.

Taiwan Semiconductor executive vice president and co-chief operating officer Y.P. Chyn told Reuters at a fab ceremony in Kaohsiung that its newly built domestic fab would add 7,000 tech jobs to Taiwan’s economy.

Chyn said the new Kaohsiung fab will soon begin commercializing 2nm wafers in the second half of this year, as planned.

Also Read: Meta Taps Taiwan Semiconductor To Build AI Chip, Aims To Cut Nvidia Dependence By 2026

Taiwan Semiconductor recently announced a $100 billion investment plan in the U.S. (on top of the $65 billion already committed).

Both Taiwan Semiconductor and Taiwan’s government have repeatedly assured that Taiwan will continue to be the headquarters for the company’s production.

Taiwan Premier Cho Jung-tai thanked Taiwan Semiconductor for reiterating its commitment to Taiwan despite its geographical expansion.

U.S. President Donald Trump has repeatedly criticized Taiwan for allegedly stealing American semiconductor business. Trump has considered imposing tariffs on semiconductor imports from all countries to encourage manufacturing to return to the U.S.

Recently, Taiwan Semiconductor Chairman and CEO C.C. Wei emphasized that the chipmaker remains committed to building 11 production lines in Taiwan in 2025.

Reportedly, Taiwan Semiconductor and Intel Corp INTC slowed the pace of its expansions in Japan and Malaysia due to weaker demand for older chips and tariff uncertainties.

In 2023, Taiwan Semiconductor held 67% of the market share in contracted semiconductor manufacturing and ~80% in advanced technology products.

Taiwan Semiconductor accounts for over a third of the Taiwan benchmark’s weight.

Price Action: TSM stock is down 2.02% at $161.92 at the last check on Monday.

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