Taipei [Taiwan], January 23 (ANI): Experts consider that lower than 15 per cent of Taiwan Semiconductor Manufacturing Company’s (TSMC) superior manufacturing processes shall be relocated to the United States by the tip of 2029, based on a report by Focus Taiwan.
Lien Hsien-ming, president of the Chung-Hua Institution for Economic Research, shared this evaluation following feedback from U.S. Commerce Secretary Howard Lutnick. He just lately acknowledged on CNBC that Washington intends to maneuver 40 per cent of Taiwan’s provide chain to American soil earlier than the conclusion of U.S. President Donald Trump’s second time period.
Focus Taiwan notes that TSMC is at the moment investing USD 65 billion into three services in Arizona, with the primary fab starting industrial manufacturing in late 2024. The chipmaker has additionally dedicated one other USD 100 billion for 3 extra fabs, two meeting vegetation, and a analysis centre.
Citing TSMC, Lien stated tools set up has begun on the second Arizona fab, which is scheduled to begin mass manufacturing in 2027, whereas building of the third fab began earlier this 12 months. TSMC can be making use of for a allow to construct a fourth fab.
After factoring in TSMC’s Arizona schedule and its total output of superior chips, Lien estimated that lower than 15 per cent of the corporate’s high-end processes can be situated within the U.S. by the tip of Trump’s presidency.
The economist recommended that stress on TSMC would possibly diminish if different main gamers like Intel, Micron, and Samsung efficiently advance their very own U.S. tasks.
Focus Taiwan additionally highlighted a current settlement between the U.S. and Taiwan to scale back tariffs on Taiwanese items from 20 per cent to fifteen per cent. This deal includes a USD 250 billion funding from Taiwanese tech and vitality sectors into the U.S., supplemented by USD 250 billion in credit score ensures from the Taiwanese authorities to assist these industries.
Lien cautioned the general public towards being discouraged by Secretary Lutnick’s rhetoric, clarifying that the precise direct funding dedication is USD 250 billion, quite than the USD 500 billion ‘down fee’ determine Lutnick talked about throughout his interview.
According to the Focus Taiwan report, Lien believes the U.S. Commerce Secretary is overstating these commitments as a tactical transfer to exert stress on Taiwan, a technique that has equally been utilized to Japan and South Korea. (ANI)