Taiwan Economy Ministry: No Information on TSMC's US Investment Plans

The Taiwanese economy ministry has not received any information regarding Taiwan Semiconductor Manufacturing Company's (TSMC) potential investment in Intel's U.S. manufacturing operations, according to Economy Minister Kuo Jyh-huei. Speaking to reporters in Taipei, Kuo stated that the ministry has not been informed of any overseas investment application by TSMC, which would require government approval through the investment review commission (Source: Reuters, February 25, 2025).

TSMC, the world's largest contract chipmaker, has been in talks with Intel about potentially taking a stake in the U.S. company, according to U.S. media reports. However, neither TSMC nor Intel has confirmed these reports. The rumors have sparked speculation about the potential impact on TSMC's strategy and Taiwan's politics, with some Taiwanese media warning that TSMC could become partly an American company, potentially leading to the loss of Taiwan's 'Silicon Shield' (Source: DIGITIMES Asia, February 23, 2025).



TSMC's potential investment in Intel's U.S. manufacturing operations could have significant implications for the global semiconductor industry and geopolitical dynamics. By expanding its production capacity in the U.S., TSMC could help strengthen the U.S. semiconductor industry, reducing its dependence on foreign suppliers. This aligns with the U.S. government's goal of achieving semiconductor self-sufficiency, as outlined in the CHIPS Act of 2022. However, it could also exacerbate tensions with China, which views Taiwan as a breakaway province and has been increasing military pressure on the island.



TSMC's revenue has been growing steadily over the past few years, reaching NT$1.77 trillion (approximately US$57.5 billion) in 2024. The company's strong financial performance has been driven by increasing demand for advanced chips, particularly in the areas of artificial intelligence, 5G, and the Internet of Things. However, TSMC's expansion into the U.S. could face regulatory hurdles and challenges, such as national security concerns and antitrust regulations.

In conclusion, the Taiwanese economy ministry has not received any information regarding TSMC's potential investment in Intel's U.S. manufacturing operations. While TSMC's expansion into the U.S. could have significant strategic benefits, it could also raise regulatory concerns and geopolitical tensions. As TSMC continues to grow and expand its global footprint, it will be crucial for the company to navigate these challenges and maintain its competitive edge in the global semiconductor market.