Taiwan sets rules for TSMC’s overseas ventures

Taiwan’s Economy Minister Kuo Jyh-huei announced that TSMC must seek government approval for overseas joint ventures, excluding advanced chip manufacturing outside of China. This policy comes amid TSMC’s discussions to invest in Intel, raising concerns about US semiconductor interests. Kuo emphasized TSMC’s importance to Taiwan’s economy, describing it as a protective force. While TSMC is investing $65 billion in Arizona for advanced chip production, no changes are planned for overseas manufacturing rules. The Taiwanese government is also preparing to discuss tariff negotiations with the US to support local companies amid trade tensions.

Taiwan considers industry support amid possible US semiconductor tariffs.

Taiwan’s Economy Minister Kuo Jyh-huei announced on Thursday that Taiwan Semiconductor Manufacturing Co. (TSMC) would require government approval for any overseas joint ventures, although there are no restrictions on manufacturing advanced chips abroad, except for China. This comes amid reports that TSMC is in talks to acquire a stake in Intel, a move that could stir tensions with the US, where former President Trump has expressed concerns about Taiwan taking away American semiconductor business.

Kuo reassured reporters in Taipei that Taiwan’s semiconductor industry, particularly TSMC, remains vital to the nation’s economy, describing it as the ‘sacred mountain protecting the country.’ He also clarified that while the Taiwanese government would not interfere with TSMC’s business decisions, any large overseas investments or joint ventures must be approved by Taiwan’s economy ministry, with no changes to the rules surrounding advanced chip production outside of China.

TSMC is already investing $65 billion in new factories in Arizona, where it plans to manufacture the most advanced 2-nanometre chips, though this will not occur for a few years. The government is also preparing to engage in discussions with the Trump administration over potential tariffs on Taiwanese imports, aiming to secure the best conditions for local companies in light of the ongoing trade tensions.

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