Taiwan Semiconductor Faces Government Scrutiny on Overseas Ventures Amid Intel Stake Rumors

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Taiwan says TSMC needs government approval for overseas joint ventures but allows advanced chip production outside China
TSMC invests $65B in U.S. factories as Taiwan defends semiconductor industry amid geopolitical tensions
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On Thursday, Taiwan Economy Minister Kuo Jyh-huei told Reuters that Taiwan Semiconductor Manufacturing Co TSM would need government permission for overseas joint ventures.

Nonetheless, there are no restrictions on making the most advanced chips overseas other than for China.

Also Read: Intel Deploys ASML’s Advanced EUV Machines, Aims to Challenge Taiwan Semiconductor’s Lead

It is a significant update as, reportedly, Taiwan Semiconductor has been negotiating a stake in Intel Corp INTC.

Meanwhile, China criticized Taiwan for surrendering its semiconductor industry to the U.S. to gain political support. Taiwan’s government, over which China claims sovereignty, relies on U.S. military support despite any defense treaty.

U.S. President Donald Trump had verbally attacked Taiwan since his presidential campaign days for allegedly stealing American semiconductor business and promised action against the country. Trump also threatened retaliatory tariffs because of Taiwan’s large trade surplus with the U.S.

Kuo told Reuters that the government would not interfere with Taiwan Semiconductor’s decisions. However, he also mentioned that the contract chipmaker needs government approval for geographical expansion and joint venture. Taiwan does not allow its companies to produce the most advanced chips in China.

Taiwan Semiconductor is already investing $65 billion in new factories in the U.S. state of Arizona, where it has won approval for the production of 2-nm chips.

Goldman Sachs told Bloomberg it expects demand for Taiwan Semiconductor’s Taipei-traded stock to surge, backed by amending the ownership of local exchange-traded funds.

Meanwhile, Big Tech giants remain aggressively invested in their AI ambitions. Apple Inc AAPL, a Taiwan Semiconductor client, earmarked over $500 billion for U.S. investments, focusing on AI and advanced manufacturing.

Price Action: TSM stock traded lower by 4.02% to $186.82 at the last check on Thursday.

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