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Taiwan is declaring that its most advanced semiconductor technology will not be transferred to the U.S. as part of a newly announced $100 billion investment by TSMC. According to The Guardian, the deal—unveiled by Donald Trump and TSMC CEO CC Wei—will see the Taiwanese chip giant build five new facilities in the U.S. The announcement has sparked debate in Taiwan, where semiconductors are considered vital to both economic and national security.
“The government would ensure TSMC ‘will keep its most advanced manufacturing processes in Taiwan,’” said presidential office spokesperson Karen Kuo. However, the specifics of these restrictions remain unclear, especially regarding the planned production of 2nm and 1.6nm chips in the U.S.
The deal, which could shield TSMC from industry-wide tariffs, has drawn criticism from opposition leaders in Taiwan, who argue that shifting production abroad could weaken the island’s geopolitical standing, specifically:
…the industry is often referred to as Taiwan’s “silicon shield”, incentivizing the US and allies to support Taiwan against Chinese invasion in order to keep the tech out of Beijing’s control.
While Taiwan’s government has downplayed concerns, it still hasn’t formally approved the deal.
Read the full report here.
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