Amid Creeping Chinese Threat, Taiwan's New Tech Minister Expresses Confidence TSMC Can Guard Its Secret Sauce

In the face of growing threats from China's Xi Jinping administration, Taiwan’s new Minister of Science and Technology, Wu Cheng-wen, is confident that the island’s most crucial company, Taiwan Semiconductor Manufacturing Co. TSM, will be able to protect its proprietary advanced technology as it expands overseas.

What Happened: Wu, a chip expert educated in the U.S., downplayed concerns about Taiwanese technology moving overseas, reported Bloomberg.

TSMC, the world’s leading manufacturer of advanced chips, is establishing factories in the US, Japan, and Europe. Wu expressed confidence in TSMC’s ability to operate in foreign territories while safeguarding the secrecy of its most advanced technology at home.

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“When TSMC promises advanced manufacturing technology overseas, it is still building that first in Taiwan.” Wu’s ministry is responsible for supporting the operations of TSMC and the broader chip ecosystem in Taiwan.

Wu expects the company to maintain its key research and development functions in Taiwan and comply with regulations while expanding internationally.

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Why It Matters: Wu's statement comes at a time when the global semiconductor industry is under intense scrutiny due to geopolitical tensions, particularly those involving China and Taiwan.

ASML Holding NV and TSMC have already prepared for a potential China-Taiwan conflict by implementing a remote shutdown feature, indicating the seriousness of the situation.

Amid these tensions, Taiwan has been strengthening its global standing through "chip diplomacy," as seen in the recent tech pacts with Canada and France.

The island’s new president, Lai Ching-te, has also pledged to continue the policy of de facto independence while bolstering its defenses against China.

Wu’s confidence in TSMC’s ability to protect its technology is a significant statement amid these escalating tensions, and it underlines Taiwan’s determination to maintain its position as a global technology leader, especially in the semiconductor industry.

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