There would be no 50-50 split in chip production between Taiwan and the US, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday ahead of a legislative meeting in Taipei, responding to comments by officials in Washington.
US Secretary of Commerce Howard Lutnick late last month proposed a “50-50 split” in semiconductor manufacturing, with half of chips used in the US to be made domestically, a plan that Vice Premier Cheng Li-chiun (鄭麗君), who is leading tariff talks with Washington, last week said would not happen.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is investing US$165 billion in six advanced wafer fabs in the US, but building 10 in Taiwan, with more planned, making a 50-50 production split impossible, Kung said.
Photo: Wang Yi-sung, Taipei Times
The outcome of Taiwan-US trade negotiations would be better than a 50-50 split deal, he added.
While the US government might have semiconductor development expectations, TSMC remains in the lead in US investments, where it holds sole ownership, Kung said.
Although TSMC also has investments in Japan and Germany, the company’s most advanced process technologies and the bulk of its production would remain in Taiwan, he said.
“Taiwan’s fabs would still be the most profitable,” he added.
Regarding TSMC and other overseas investments of semiconductor companies, Kung said that the government’s attitude is that if there are orders and profits overseas, no concerns about national security and it benefits the industry, then the government would provide administrative assistance.
The government could provide support such as living and transportation assistance if companies form industrial clusters overseas, while in places like Japan, the government would also help negotiate tax breaks or other benefits with local authorities, he said.
As for investment at home, companies have pledged nearly NT$3 trillion (US$98.25 billion) in combined investment in the government’s three major “Invest in Taiwan” programs and the figure is expected to rise, Kung said.
The Executive Yuan in July approved an extension of the programs to 2027, while boosting the loan limit to NT$720 billion from NT$360 billion.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
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