Whilst the Trump Administration announced it has completely blocked Huawei, TSMC announced on the 15^th of May that it would place investment into the United States. As observed by experts, TSMC is likely to take hold of the critical moment of opportunity and priority for key technologies between Taiwan and US cooperation as TSMC claimed that it is going to set up a wafer manufacturing plant in the US under the context of friction and conflict between China and US.

 

        After the outbreak of the Sino-US trade war, it has already extended from the tariff warfare to the second wave of high-tech wrestling. After TSMC announced on the 25^th of May, to set up a manufacturing plant in Arizona, the US Department of Commerce had again issued the latest ban that night, further restricting Huawei from using US technology and software to design and manufacture semiconductors to uphold and maintain US national security.

 

    The US Department of Commerce requires that institutes that would like to supply goods to Huawei with the use of; technology, software, and equipment found on the US commercial control list, or chips manufactured under these design specifications, must obtain permission first before any shipments can be done.

 

          The Trump Administration has stepped up its "de-Huawei" campaign, and these measures have shocked the global market. Most of all, both the United States and China are eager to establish a self-organized and controllable industrial chain. Given such a vision, the US has significantly tied up its regulations regarding those institutes placing investments in the US. With TSMC’s investment, it helps increase US confidence in terms of the technical secrecy and security maintenance for its industry chain, so that it can smoothly cooperate with TSMC.

 

        As analyzed by Hong Chun-Hui, the senior industry consultant and deputy director of MIC of Institute of Information Industry, some of TSMC ’s foundry customers may be listed by the US government as industries related to the security of the country and supply chain. In this case, the US will consider that these products can be supplied locally to avoid possible risks.

 

        Hong Chun-Hui further pointed out that if TSMC goes to the United States to place investment in the future as well as manufactures certain products which are concerns of national and information security, the United States can supervise. This is to ensure the confidentiality of these products manufactured by TSMC. The cooperation can help enhance both parties to work with crucial technologies that involve national and information security. Smart products are found to have higher added value, it can be reckoned as beneficial to TSMC in the long run from the integration perspective of the supply chain.

      An insider from the trade bluntly indicated in an interview that Taiwan and the United States have always been working very closely in the field of semiconductors. As a result, if TSMC can place investments in the US and set up a manufacturing plant, it would not only help TSMC to reach the market but also enhance its interaction with local R & D, industry, and academic world. This can even open up brand new circles of customers. As viewed, the maneuver is not necessarily something appalling for TSMC but rather beneficial. (News source: Economic Daily News)