A recent poll indicates half of Taiwanese respondents believe Taiwan Semiconductor Manufacturing Company (TSMC) is becoming a U.S.-focused entity following substantial investments in the United States, a move initiated under pressure from the Trump administration.
Concerns in Taiwan regarding the company’s trajectory have grown since TSMC committed to investments reported to be in the “hundreds of billions” of dollars to establish major operations on U.S. soil. The perception of the company shifting away from its home base was intensified by earlier rumors that the United States government was considering acquiring a stake in TSMC. A poll conducted by the newspaper UDN has now quantified this sentiment, revealing that 50% of the Taiwanese public surveyed is concerned about TSMC evolving into what is being called “TSMC of the United States” or “US-SMC.” The publication noted that some scholars and experts believe this transformation may already be underway, stating that the strategic deployment by the U.S. toward the chipmaker has presented challenges to Taiwan’s domestic semiconductor industry.
Academics have weighed in on the strategic motivations behind the U.S. push. A professor at National Chengchi University, a prominent political science school in Taiwan, stated that the Trump administration’s objective is to have TSMC produce not only cutting-edge nodes but also advanced packaging technologies within the United States. This expert also articulated that TSMC’s presence is a key national asset that significantly elevates Taiwan’s geopolitical importance to the U.S., particularly in the context of evolving relations between Taiwan and China. The professor suggested that without the chip giant’s critical role, Taiwan’s strategic value to the United States would be dramatically reduced. The shift of some operations to the U.S. is seen as part of a larger strategic aspiration beyond immediate geopolitical concerns.
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The move is also heavily influenced by commercial and economic factors. TSMC’s most significant clients are predominantly American technology companies, including NVIDIA, Apple, Broadcom, and AMD, all of which rely on sourcing the most advanced semiconductor nodes available. The Trump administration prioritized the reshoring of manufacturing to the U.S. and utilized trade policy as a form of leverage. This created a powerful incentive for technology companies and their suppliers to invest in U.S. facilities to secure government support and mitigate the risk of substantial tariffs. TSMC’s expansion of its U.S. operations is considered a necessary part of this broader industrial shift from East to West.
Despite the expansion in the U.S. and the resulting public perception in Taiwan, the core of TSMC’s technological and research capabilities remains based on the island. The company continues to conduct its primary research and development for its most advanced technologies, such as the upcoming N2 node, within Taiwan. The majority of the firm’s top engineering talent is also located in Taiwan, ensuring that critical intellectual property and semiconductor “recipes” are developed and retained domestically. Furthermore, high-end manufacturing for the most advanced nodes currently occurs exclusively in TSMC’s fabs in Taiwan, not in its overseas facilities. This indicates that while the company has diversified its global footprint with a clear inclination toward the U.S., it has maintained its foundational technology and innovation hub in its home country.
