Taiwan hails ‘historic’ TSMC deal with US, but will it lose the ‘silicon shield’ protecting it from China?
The producer of the world’s most advanced chip technology is investing on US soil but some fear that could reduce the leverage Taiwan holds to ensure its future security
TSMC’s chief executive, CC Wei, smiled broadly as he stood next to Donald Trump in the White House on Monday, announcing what he said was the biggest foreign direct investment on US soil in history. His company – the producer of most of the world’s most advanced semiconductors – would boost its existing $65bn US presence by a whopping $100bn.
For TSMC the deal meant they would avoid massive tariffs Trump had flagged for the global chip industry. For the US it mean tens of thousands of construction jobs, and the eventual development of crucial technology on US soil, far away from the threat of China taking control of it if it one day annexed Taiwan.
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