A recent poll indicates that half of the Taiwanese public is concerned about Taiwan Semiconductor Manufacturing Company (TSMC) becoming increasingly focused on the United States. The survey, conducted by the newspaper UDN, found that 50% of respondents believe the company is turning into “TSMC of the United States.”
The push for TSMC to establish major fabrication facilities in the U.S. was part of a broader effort by the Trump administration to bring semiconductor manufacturing back to American soil. The company committed to investing “hundreds of billions” in the United States. These developments have fueled concerns within Taiwan about a potential shift in the company’s focus away from its home base. The perception of TSMC becoming more Americanized was further amplified by rumors that the U.S. government was considering acquiring a stake in the company.
According to the UDN report, some scholars and experts believe the transformation into “TSMC of the United States” may already be a reality. They suggest that even if the shift is not complete, the U.S. strategic deployment toward TSMC already presents challenges to Taiwan’s broader semiconductor industry. One professor from National Chengchi University stated that the Trump administration’s goal was for TSMC to produce cutting-edge nodes and advanced packaging in the U.S. He argued that TSMC is a key strategic asset for Taiwan, and without the chip giant, the island’s importance to the U.S. would be significantly reduced, especially considering the geopolitical situation involving Taiwan and China.
The strategic shift is also driven by commercial factors. TSMC’s largest clients are primarily American companies, including NVIDIA, Apple, Broadcom, and AMD, all of which rely on the foundry for advanced semiconductor nodes. The Trump administration’s trade policies, which used the threat of tariffs as leverage, created strong incentives for companies to invest in U.S.-based manufacturing. By expanding its operations in the U.S., TSMC could secure government support and maintain access to its key customers without the risk of high tariffs. This expansion is seen as part of a larger industrial shift from East to West, making TSMC’s U.S. presence a strategic necessity.
Despite the substantial investments in the U.S., TSMC continues to maintain its core research and development operations in Taiwan. The company’s most advanced production, including the upcoming N2 node, is slated for its Taiwanese fabs. Furthermore, the majority of TSMC’s top engineering talent remains based in Taiwan, ensuring that the critical intellectual property and process “recipes” for its technology are developed and kept within the country. While TSMC has diversified its manufacturing footprint to include a significant U.S. presence, its technological core remains firmly rooted in Taiwan.
