TSMC Shares Dip Amid U.S. Pressure and Taiwanese Public Opposition

In recent developments, Taiwan Semiconductor Manufacturing Co. (TSMC) finds itself at a pivotal junction as it navigates mounting pressure from the United States. The prospect of TSMC relocating its most advanced 2-nanometer technology to the U.S. has stirred significant opposition among Taiwanese citizens. This sentiment was highlighted by a recent poll, which revealed 88.4% of respondents disagreeing with accusations that Taiwan is siphoning off U.S. chip business and 84.8% opposing the technology transfer to the U.S.

The situation extends beyond public opinion, as political and economic implications loom large. Former President Donald Trump has been vocal in his criticism, claiming that Taiwan's semiconductor sector is appropriating jobs and profits from the U.S. He has suggested harsh measures, including a 100% tariff on Taiwanese chips, to entice companies to relocate production to U.S. soil. These proposals have heightened fears that TSMC, a cornerstone of Taiwan's economy and technological prowess, might undergo a significant transformation under U.S. influence.

In response to these pressures, TSMC announced its plans to expand its manufacturing footprint in Arizona, seeking to balance its domestic advantages with international strategic demands. The company's board will, for the first time, convene in the U.S., a move interpreted as a gesture towards fostering goodwill with American counterparts.

This series of events has sparked apprehension that Taiwan might be trading its core technological assets for geopolitical favors, potentially jeopardizing its semiconductor industry, a sector crucial to its economic vitality. There is widespread criticism of the current Taiwanese administration’s perceived acquiescence to U.S. demands, with accusations of sacrificing national interests in the process.

As these dynamics unfold, TSMC remains at a crossroads, grappling with geopolitical tensions and its global business strategy. The firm's decisions in the coming months will likely be pivotal, not just for its corporate trajectory, but for the technological landscape and economic future of Taiwan.