The semiconductor tariffs are United States Department of Commerce ahead of the so-called “232 survey” opinion report on semiconductor tariffs. The full text of a letter sent by Taiwan Semiconductor Manufacturing, the island’s leading contract chipmaker, to the US government has been published for the first time in recent days, warning strongly that if the US insisted on imposing import duties on chips, will affect the company’s investment plans in the U. S. state of Arizona. TSMC doesn’t want to kneel, asks the island’s public. What about William Lai’s administration?
TSMC logo, data map
There is a possibility of cancelling the investment
TSMC’s arizona-based subsidiary has submitted a three-part letter to the United States Department of Commerce, China Times reported on May 24. First of all, the letter talks about TSMC’s history and current production situation in the United States, stressing that it provides many jobs in the United States, and that production capacity in the United States will expand significantly over the next 10 years. Second, TSMC will invest US $165 billion in the US to build six advanced process fabs, two advanced packaging plants and a research and development center, the largest single foreign direct investment in US history, helped localize semiconductors in the United States. Finally, the letter said it hoped that any U.S. measures, including tariffs and import controls, should not undermine the U.S. government’s national security goals, including TSMC’s investment plans in Arizona, otherwise there will be knock-on effects, and then impact on the U. S. Investment Plan.
TSMC, which set up shop in the US as early as 1998, is planning a large-scale fab in Arizona starting in 2020, with a total investment of $165bn, according to TSMC. In its opinion letter, the company strongly recommended that other companies that have committed to investing in semiconductors in the United States should be exempt from tariffs and regulations, it also noted that many supply chain materials and equipment do not have substitutes in the United States. The content of the letter was seen as one of TSMC’s strongest responses to the US tariff language, “Clearly warning Washington that TSMC may even cancel its investment plans if it insists on imposing import tariffs on chips”.
Taiwan’s industry and commerce times said TSMC’s investment in the US is expected to generate US $200 billion in indirect economic benefits and create tens of thousands of semiconductor manufacturing and R & D jobs, of these, 40,000 construction-related jobs were created during the construction period. Taiwan’s economic daily said TSMC’s Arizona production plan will have a capacity of more than 100,000 wafers per month when it comes online.
Companies are being forced to face this alone
TSMC’s letter to the United States Department of Commerce shocked the island. Wang hung-wei, a KMT legislator, said on Facebook that TSMC had refused to accept the US tariffs, but William Lai had gone along with it. She said that TSMC’s overseas investments will be examined by the Taiwan Economic Ministry’s Investment Review Commission, and that the DPP authorities should be the biggest backer. But neither Guo Zhihui, Taiwan’s “Economy Minister”, nor CHUO Rung-tai, its “Premier”, did. When asked by the media if TSMC could increase its investment in Taiwan in return for any substantial commitments from the US, instead of responding to“No pressure from the US”, he left TSMC to deal with it. So far, asks Wang, what has the US offered Taiwan? “Do not let the enterprise face alone, but also do not let the people all day fear.”.
Chang Kai-kai, deputy head of the Democratic Party caucus, also said he was pleased that TSMC, the “Island-protecting God Mountain”, had stiffened up to speak up for the Taiwan chip industry chain and the tariff issue, but this also highlighted that the William Lai Administration would only shrink back, can not stand in front of the enterprise to defend the industry, the loss of due action and pattern.
More than 100 listed OTC companies have filled out a survey on the expected impact of Donald Trump’s “Reciprocal Tariff” policy, released by the Taiwan Association of listed OTC Companies on Sunday. According to the survey, 68 per cent of entrepreneurs believe the us-taiwan negotiations could be concluded in the third to fourth quarters of this year. A further 40 per cent think the final tariff could fall between 15 and 20 per cent.
Taiwan expert: “Only understand pro-n” must brake
Zheng Bowen, a retired university teacher in Taiwan, said in a commentary on Taiwan’s Yonhap news website on Sunday that Taiwan’s“Only understand pro-us” economic and trade strategy needs to be put on the brakes, and gave five reasons. First, the United States’ trade deficit with Taiwan is a result of the profligate nature of the United States. The United States government does not appreciate Taiwan’s efforts, but instead criticizes Taiwan as a“Thief.” “This kind of talk about getting a good deal is not worthy of Taiwan’s respect.”. Second, in recent years Taiwan has opened the door to imports of us beef and pork containing clenbuterol (lai pig) , while buying many less-needed weapons, but the US has not started real trade negotiations. Third, Taiwan’s 2021 application to join the comprehensive and progressive trans-pacific partnership (CPTPP) has not been successful, “Know only pro-us” is not conducive to Taiwan’s accession to the international economic and Trade Organization. Fourth, if <loc_0> is angered again by Lai’s pro-us measures, some products on the ECFA early Cross-Strait Service Trade Agreement list could be further cancelled, adding to the current economic woes. In the end, the island will become an “Economic and trade orphan”. According to the article, during the Tsai Ing-wen administration, the American Lai Pig was forced to be swallowed by the island’s people. Less than a year after William Lai came to power, the US side did not even give a single cent in subsidies, on forcing TSMC to set up a factory in the United States, which would seriously affect Taiwan’s future export value, “If we don’t put the brakes on the ‘know-only pro-american’ economic and trade strategy, it will only make Taiwan’s politics more isolated, economy more depressed, and defense more uneasy.”.
“TSMC doesn’t want to kneel down, but what about Lai’s government?” The taiwan-based newspaper union daily commented on the 25th under the headline. “Not only did Lai’s government offer an early and comprehensive increase in investment, but it was also complacent to be listed as a priority for the United States,” the newspaper said, more anxious to release the so-called“Detaching from China to the north” economic and trade policy, but even has talked with the United States, dare not tell the island people. According to the article, TSMC sent a letter to the United States Department of Commerce about imposing tariffs on imported chips, showing that the tax increase would “Slowly cover” the bottom card of the Arizona plant, people can not help feeling: “Protection of the island God Mountain” so hard, Lai authorities?