Key Takeaways:

• TSMC's CEO announced a $100 billion investment in the U.S., raising total commitments to $165 billion.
• Taiwan's President, Lai Ching-te, defended the investment as driven by market demand, not external political pressure.
• The move has sparked concerns in Taiwan regarding its impact on domestic semiconductor capabilities and national security.

TAIPEI: The Taiwan Semiconductor Manufacturing Company (TSMC) has revealed a substantial $100 billion investment plan to expand its operations in the United States, a move hailed as a "historic moment" for Taiwan-US relations by Taiwan's President, Lai Ching-te. This commitment raises TSMC's total investment in the U.S. to $165 billion, making it the largest foreign direct investment in U.S. history, according to VOA News.

TSMC's announcement comes amid ongoing pressure from U.S. President Donald Trump, who has criticized Taiwan for its dominance in semiconductor manufacturing and hinted at imposing tariffs unless the island supports moving operations stateside. Lai asserted at a press conference that the government's decision-making on TSMC's investment was "not made under any pressure from the U.S.," further emphasizing that the company's motivations were purely business-driven Channel News Asia.

TSMC’s CEO, C.C. Wei, also reaffirmed that the company’s expansion in the U.S. is a response to significant demand from American clients, stating that their production lines are already fully booked for the next three years. "Whenever TSMC builds a production line outside Taiwan, it is driven by customer demand," he noted New York Times.

The expanded investment strategy includes constructing three new manufacturing plants and two packaging facilities in Arizona, addressing concerns in Taiwan about the potential loss of its core semiconductor capabilities, which many view as a vital economic asset and a shield against increased aggression from China. Despite these concerns, Lai and Wei insisted that operations in Taiwan would remain unaffected, with plans to establish 11 new production lines there in the coming year Reuters.

This significant overseas move, however, has fueled political debate within Taiwan, particularly amid fears that increasing TSMC’s presence outside Taiwan could diminish the island’s strategic capabilities in the face of China’s rising ambitions. Opposition lawmakers have expressed unease, suggesting that Taiwan's security could be compromised if U.S. investments overshadow local capabilities India Times.

As TSMC continues its global expansion, Lai has called for enhanced international cooperation to bolster Taiwan's economic position, signifying an important shift in Taiwan's industrial strategy and its relationship with major global powers VOA News.