A surprising ceremony at the White House took place as President Donald Trump introduced a monumental $100 billion investment from Taiwan Semiconductor Manufacturing Company (TSMC), hailed by Trump as the world’s most powerful company. However, this announcement, made nearly 8,000 miles from TSMC’s headquarters, stirred significant anxiety in Taiwan regarding the potential loss of control over its semiconductor industry due to U.S. political maneuvering.
The commentary from former Taiwanese President Ma Ying-jeou was swift, accusing the ruling Democratic Progressive Party of compromising Taiwan’s interests by ‘selling’ TSMC to Trump in a move interpreted as a ‘protection fee’. Ma deemed the situation a national security crisis that threatens public confidence and Taiwan’s geopolitical stability. In an effort to calm fears, Taiwan’s current President Lai Ching-te appeared alongside TSMC CEO CC Wei, assuring that the investment wouldn’t detract from TSMC’s commitments to its home operations.
TSMC plays a crucial role in the global semiconductor landscape, producing over 90% of advanced microchips essential for various technologies, including AI and smartphones. This reliance on Taiwan’s capabilities acts as a strategic deterrent against potential aggressions, particularly from China, which views Taiwan as a renegade province.
The implications of this U.S.-Taiwan investment come at a time of heightened Chinese military activities in the region, with President Trump’s recent comments casting a shadow on the future of U.S.-Taiwan relations. Trump has claimed that Taiwan should be accountable for protecting itself — a narrative that has met with skepticism and concern across Taiwan.
Taiwanese citizens have drawn parallels to Ukraine’s situation, feeling that Trump’s administration may treat Taiwan as leverage in broader geopolitical negotiations. This sentiment reflects a growing anxiety that Taiwan could become a pawn in U.S.-China relations, especially under an administration known for abrupt policy shifts.
Despite the unease, some see Trump’s deal with TSMC as a pragmatic business decision. However, multiple analysts have warned that Trump’s previous threats of drastic tariffs on semiconductors could lead to an environment of unpredictability for industry leaders.
Politicians and business leaders continue to navigate this complex intersection of international relations and economic interests, with TSMC’s investment symbolizing both opportunity and risk in the face of global power dynamics. TSMC has received substantial state support under the Biden administration’s Chips Act, which seeks to boost domestic manufacturing; however, the ongoing political tensions suggest a volatile climate ahead, as Taiwan’s future in the semiconductor sector hangs in balance.