debut: 2/16/17
38,890 runs
TSMC pays Trump a $100 billion ‘protection fee’
It was a surprise ceremony at the White House presided over by President Donald Trump to unveil a $100 billion investment from what he called the world’s most powerful company, Taiwan Semiconductor Manufacturing Company (TSMC).But nearly 8,000 miles away, the mood was far from celebratory. Instead, the shock announcement last week has reignited fears in Taiwan about losing its crown jewel, its world-beating semiconductor industry, to the US due to political pressure.To reassure the public, Taiwan President Lai Ching-te appeared alongside TSMC CEO CC Wei last week at Taipei’s presidential office, saying the company’s US investment would not undermine its commitment to and planned expansion in its home base.
Weaponizing tariffs
TSMC’s $100 billion investment marks the latest in a wave of businesses committing massive sums to the US. But it stands out as one of the first major foreign firms to do so, and Trump claims more such investments are on the way.TSMC produces more than 90% of the world’s advanced microchips, which power everything from smartphones and artificial intelligence to weapons. That’s why many in Taiwan believe that global dependence on its semiconductors serves as a “silicon shield,” a deterrent against a potential Chinese invasion.
‘Ukraine today, Taiwan tomorrow’
Taiwan relies on US military and political support. Under the Taiwan Relations Act, the US is legally obligated to provide Taiwan with the means to defend itself against a possible attack by China.Washington earlier this month abruptly suspended military aid to Ukraine following a heated exchange between Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelensky at the White House, just hours after the cheerful TSMC ceremony.
It was a surprise ceremony at the White House presided over by President Donald Trump to unveil a $100 billion investment from what he called the world’s most powerful company, Taiwan Semiconductor Manufacturing Company (TSMC).But nearly 8,000 miles away, the mood was far from celebratory. Instead, the shock announcement last week has reignited fears in Taiwan about losing its crown jewel, its world-beating semiconductor industry, to the US due to political pressure.To reassure the public, Taiwan President Lai Ching-te appeared alongside TSMC CEO CC Wei last week at Taipei’s presidential office, saying the company’s US investment would not undermine its commitment to and planned expansion in its home base.
Weaponizing tariffs
TSMC’s $100 billion investment marks the latest in a wave of businesses committing massive sums to the US. But it stands out as one of the first major foreign firms to do so, and Trump claims more such investments are on the way.TSMC produces more than 90% of the world’s advanced microchips, which power everything from smartphones and artificial intelligence to weapons. That’s why many in Taiwan believe that global dependence on its semiconductors serves as a “silicon shield,” a deterrent against a potential Chinese invasion.
‘Ukraine today, Taiwan tomorrow’
Taiwan relies on US military and political support. Under the Taiwan Relations Act, the US is legally obligated to provide Taiwan with the means to defend itself against a possible attack by China.Washington earlier this month abruptly suspended military aid to Ukraine following a heated exchange between Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelensky at the White House, just hours after the cheerful TSMC ceremony.
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