Taiwan is king: TSMC's overseas fabs will only contribute 10% to total production capacity

TSMC with its massive global expansion and multiple semiconductor fabs in the US, will only account for around 10% of its total production capacity.

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In a new report from Taiwan TV News (TTV), TSMC's new fabs in the USA, Japan, and Germany have raised "domestic concerns" over industrial relocation from Taiwan. TSMC has been expanding its production facilities into other countries, but there are now concerns growing in Taiwan about the potential impacts on domestic industries, as TSMC is one of Taiwan's biggest companies with massive global influence.

Bonnie Glaser, director of German Marshall Fund, saying that even at full production, TSMC's various overseas semiconductor plans will continue less than 10% of its global output, according to TTV, which didn't share any exact numbers.

As for its global expansion, TSMC has invested a hefty $65+ billion on three phases of its Fab 21 semiconductor facilities, with the US government coughing up $11.6 billion of investment through its CHIPS Act, including $6.6 billion in grants and up to $5 billion in loans.

TSMC's new Phoenix, Arizona-based semiconductor plant has around 8000 workers on-site daily, with peaks of up to 12,000 staffers at once. TSMC employees has been settling down with their families in Phoenix, forming new community clusters, which have created paths for businesses to cater to the new population. This includes the construction of Chinese supermarkets and Taiwanese restaurants in Phoenix, with the local economy enjoying the waves of TSMC staffers and their families, reported TTV.

Manager Lin Mihua said: "This place is a very diverse country. I feel that our mentality needs to be adjusted and we must respect each other's culture".