Taiwan's Economic Ministry holds the keys to a massive US investment by TSMC. This isn't just about money. It's about national security and economic growth. The ministry, led by J. W. Kuo, has the final say on whether TSMC can pour $100 billion into US chip manufacturing. This isn't a small deal. It's a huge chunk of change that could shake up the global semiconductor industry.

The ministry's approval isn't a sure thing. Kuo made it clear that any investment threatening Taiwan's security or economy is a no-go. He shared this during a parliamentary session, where lawmakers grilled him about TSMC's plans. The opposition party was particularly interested. They wanted to know if Kuo was in the loop before TSMC's big announcement with President Trump. This wasn't the first time Kuo faced heat over TSMC's investments.

Earlier, Kuo admitted he didn't know about the $100 billion plan before it was announced. This slip-up caused quite a stir. The opposition party even called for his resignation, accusing him of potential conflicts of interest. But Kuo pushed back. He insisted that all government agencies were aware of TSMC's plans. He also claimed his comments were taken out of context, leading to misleading reports.

So, how will the ministry evaluate TSMC's US investment? Kuo outlined several factors. These include potential impacts on Taiwan's economy, compliance with international trade agreements, intellectual property infringement, and labor issues. If the investment fails to meet any of these standards, it's a no-deal.

There's another twist. Reports suggest TSMC might invest in Intel, a struggling US chip giant. But Kuo isn't biting. He won't comment on market rumors until TSMC confirms them. He also discussed TSMC's "N-1" restriction. This rule prevents TSMC from setting up overseas plants with the latest tech. Kuo sees this as a standard business practice. Firms prefer stable technologies for overseas investments to maximize profits.

The stakes are high. TSMC's $100 billion investment could reshape the semiconductor landscape. But it's not just about the money. It's about national security, economic growth, and international trade. Taiwan's Economic Ministry has a lot to consider. Their decision will have ripple effects far beyond Taiwan's shores. It's a complex issue. But one thing is clear: the ministry's approval isn't guaranteed. They have to weigh the potential benefits against the risks. It's a tough call, but it's a call they have to make.

Taiwan's Big Decision: Approving TSMC's US Investment

Actions