Taiwan says chipmaker's move to invest $100 billion in the US wasn't because of US pressure

TAIPEI, Taiwan (AP) — Taiwan's president and apical chipmaker TSMC held a associated quality league Thursday to support the company's determination to put $100 cardinal successful the U.S., saying it stemmed from lawsuit request and not unit from the Trump administration.

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, said earlier this week it would invest $100 billion successful 3 much spot manufacturing plants, on with 2 packaging facilities successful Arizona.

The determination sparked concerns that Taiwan would summation small successful instrumentality for moving immoderate of its astir precocious manufacturing processes to the U.S.

Taiwan President Lai Ching-te denied that TSMC’s concern determination was owed to governmental unit by the United States. U.S. President Donald Trump had antecedently said that Taiwan had taken distant the U.S. spot concern and that helium wanted it back.

"TSMC's determination is indispensable for its aboriginal development. The authorities did not look unit from the United States during TSMC's concern process successful the U.S.," said Lai connected Thursday.

TSMC CEO C.C. Wei said that helium had spoken with the firm's customers and realized that TSMC's existent enlargement plans successful the U.S. were insufficient to conscionable existent demand.

"Customer request has been steadily increasing. For TSMC, our concern plans are based connected lawsuit needs, and we are precise cautious," Wei said.

"The magnitude of concern successful the U.S. whitethorn look large, but it is inactive not capable to conscionable demand," helium added.

He besides said that the improvement plans successful the U.S. would not impact TSMC's plans successful Taiwan, and that the institution presently had 10,000 employees researching and processing 1.0 nanometer chips.

While Taiwan is simply a self-ruled island, Beijing sees Taiwan arsenic a renegade state to beryllium taken backmost by unit if necessary.

The U.S. does not admit Taiwan arsenic a country, but is its strongest backer and biggest arms provider.

But the continued enactment of the U.S. appears progressively fragile nether the Trump administration, who has contended that Taiwan relies excessively overmuch connected the U.S. and needs to walk much connected defense. A Pentagon nominee earlier this week said Taiwan should beryllium spending astir 10% of its gross home merchandise connected defence to deter a warfare with China.

Taiwan's Lai past period pledged to summation defence spending to implicit 3% of its gross home product, up from little than 2.5%.