“Of course, Taiwan is not stealing the chip industry from the US. The chips we make are contracted by US companies, which still have the highest gross margin. Trump may have some misunderstanding on such matters, and we will clear it up.” Kuo Jyh-huei, Taiwan's economic minister
Minister Kuo attributed the matter to a misunderstanding by Trump, which he said should be cleared up. When the Republican candidate's comments were made public in July, Taiwanese politicians were concerned that if Trump were to become president again, he might not be as committed to defending Taiwan against an attack by China. Beijing says there is only one China and it is not Taiwan. A successful attack on Taiwan would also put TSMC in that country's hands.
TSMC is building three US factories in Arizona. | Image credit: TSMC
Because Taiwanese politicians fear that Trump is basing his actions on business relationships, they are worried that under a second Trump administration, the U.S. will backtrack on President Joe Biden's pledges to protect Taiwan from China unless Taiwan pays the U.S. for protection. Trump has actually floated the idea of Taiwan paying the U.S. for protection from China, a proposal that prompted Taiwan's Prime Minister Cho Jung-tai to say in July, “It is our shared responsibility and goal to maintain peace and stability across the Taiwan Strait and the Indo-Pacific region.”
The second factory is scheduled to open in 2028 and will produce cutting-edge 3nm and 2nm chips. The third factory will be ready by the end of the decade and is expected to produce 2nm chips or more. Once completed, the factories will be the most technologically advanced semiconductor manufacturing facilities in the United States.