Taiwan Semiconductor Manufacturing Co. (TSMC) has reaffirmed its commitment to keeping its core operations in Taiwan by opening a new chip manufacturing plant in the southern city of Kaohsiung. The new facility, which will use cutting-edge 2-nanometer (nm) technology, will create 7,000 high-tech jobs and strengthen Taiwan's key role in the global semiconductor supply chain, Reuters reported.
TSMC Executive Vice President and Co-Chief Operating Officer Yung-Pei (Y.P.) Chin spoke at the plant's opening ceremony, which was broadcast on local television channels, and said the plant will enter mass production in the second half of 2025, according to plan.
The event came weeks after TSMC announced a $100 billion investment plan to expand production in the United States, a move that raised concerns in Taiwan about the company's potential weakening of its domestic presence.
Without commenting directly, Chyn stressed that Taiwan will remain TSMC's strategic and operational base. "We'll continue to look for space to expand investments in Taiwan," he said. "Our commitment to meeting the demands of global customers remains unchanged."
Taiwanese Prime Minister Cho Chung-tae, who also attended the ceremony, thanked TSMC for reaffirming its commitment to the island. "Most important foundations will remain in Taiwan," he said. "TSMC will always be our national team."
TSMC is often referred to as the "sacred mountain that protects the country" because of its key role in the global semiconductor industry and strategic importance to Taiwan's economy.
With its dominance in advanced chips — with customers including Apple, NVIDIA, Qualcomm — TSMC is a vital part of the U.S. technology supply chain. Amid geopolitical tensions, U.S. President Donald Trump has repeatedly called for chip manufacturing to return to the U.S. and criticized Taiwan for "pulling" that business out of the country. Trump is expected to announce sweeping reciprocal tariffs on imports, including on semiconductors, this week.
Despite this, both the company and the Taiwanese government insist that the most advanced technology will remain on the island. In addition to the Kaohsiung plant, 2nm chips will also be manufactured at TSMC's main site in Hsinchu.