Taiwan worried over TSMC-Trump deal and US 'tech transfer': Taiwan will lose its chip dominance

President Trump recently announced that TSMC would be investing a further $100 billion into US semiconductor manufacturing, but it is leaving Taiwanese officials with a sour taste in their mouths as this sounds and feels like a technology transfer.

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In a new report from UDN, we're learning that TSMC's new investment of another $100 billion into the US chipmaking industry has Taiwanese officials concerned it would lose its global dominance on the semiconductor industry, and that the US would take that position over.

TSMC has however assured Taiwan that its expansion into the US won't downgrade the country's importance on the semiconductor supply chain, and that its core technologies will remain in Taiwan. TSMC Taiwan has a massive R&D team on home soil, with its cutting-edge process node production only taking place at its Taiwan-based fabs, with other nations like the US making previous-gen chips.

• Read more: TSMC's Intel Foundry joint venture idea: NVIDIA, AMD, Broadcom, Qualcomm
• Read more: NVIDIA: TSMC's new fabs the 'foundational pillar' of tech supply chain in the USA
• Read more: President Trump: TSMC will be investing another $100B into US operations
• Read more: TSMC mass production of A16 process tech in 2H 2026 in Taiwan, new Arizona fab in 2028

TSMC might be spending a further $100 billion on its US semiconductor plans, but will be opening up not one, but four new semiconductor fabs in Taiwan showing its dedication to the country. TSMC's continued expansions into the US are both good and bad, good for the US, but it seems there's tension brewing under the surface for Taiwan.