TAIPEI (TVBS News) — A Kuomintang (KMT, 國民黨) legislator expressed concerns on Tuesday (March 4) over TSMC's (台積電) US$100 billion investment in the U.S., warning this move signifies not only capital outflow but also a shift in Taiwan's economic lifeline.
Legislator Ko Ju-chun (葛如鈞) suggested TSMC might be aiming to gain U.S. support, but he cautioned that the faster and more advanced the processes, the more detrimental it could be for TSMC and Taiwan, exacerbating the risk of industrial hollowing.
Ko highlighted the shock among investors when TSMC's ADRs plunged 4.2% on the U.S. stock market after the news broke last night. He noted that Taiwan's TSMC ecosystem is just beginning to take shape with new factories in Hsinchu and Kaohsiung and CoWoS capacity adjustments. However, U.S. pressure is forcing a shift, threatening Taiwan's "silicon shield."
Ko said the U.S. has not provided subsidies, yet it demands priority for sub-2nm processes in Arizona. The plan accelerates from one 5nm plant to two or three 4nm, 3nm, and 2nm plants. Ko warned of doubled manufacturing costs and scarce engineers in the U.S., leading to plummeting profit margins.
