Taiwan Semiconductor Manufacturing Company (TSMC) applied to build a wafer production plant in China on Monday. The three-billion US dollar investment has since been much discussed by officials and experts.
Cabinet spokesperson Sun Lih-chyun said on Tuesday that TSMC’s expansion in China is part of their global strategy, and they will safeguard their most advanced technology.
“TSMC sets over 90% of its investment and employment locally in Taiwan," said Sun.
"They are not setting up the plant in China with the most cutting-edge technology—that is always reserved for the Taiwan branches. TSMC has taken into consideration other conglomerate’s expansion in China. Their strategy is to reserve the best technology locally and invest in a competitive branch to gain a share in the Chinese market.”
Vice Premier Chang San-cheng said during an interview that it is imperative for TSMC to expand into China. He said that China has set a clear goal to produce 40% of its market’s IC chips by 2020. That portion will increase to 70% by 2025. TSMC has to establish their presence in the Chinese market now before it is too late to do so.
Chang also said the government has recently loosened its policies to allow more Taiwanese corporations to invest in China. They will keep an eye on TSMC’s future needs and provide assistance when possible.