Government Approval Mandatory for TSMC for Overseas JV: Taiwan Minister

Taiwan’s Economy Minister, Kuo Jyh-huei, announced that Taiwan Semiconductor Manufacturing Co. (TSMC) must obtain government approval before entering into any overseas joint ventures. However, there are no restrictions on producing advanced chips outside Taiwan, except for China.

TSMC’s Global Expansion & Government Oversight

Reports suggest that TSMC is in discussions for a potential stake in Intel, though neither company has confirmed this. Taiwan’s government plays a key role in regulating large overseas investments, ensuring national economic and security interests are upheld.

Kuo reassured that Taiwan’s semiconductor dominance remains unshaken. “We must have confidence in TSMC, and the government will fully support the ‘sacred mountain protecting the country,’” he said, referring to TSMC’s strategic importance to Taiwan’s economy.

Regulatory Framework & U.S. Trade Challenges

Taiwan strictly prohibits companies from producing cutting-edge chips in China, while other overseas ventures require prior government approval. TSMC is already investing $65 billion in new factories in Arizona, USA, with government permission to manufacture 2nm chips there in the coming years.

Meanwhile, Taiwan faces potential U.S. import tariffs amid trade imbalances. Kuo confirmed that negotiations are underway to secure favorable conditions for Taiwanese companies.

Source: The Economic Times