Taiwanese firms to invest another $20b in US

Taiwanese corporations are set to funnel another $20 billion into the United States, propelled by surging demand for artificial intelligence (AI) applications, according to the island's economy minister. Kung Ming-hsin, speaking at the opening of the U.S. pavilion at the SEMICON trade show, hinted at the potential investments without revealing specifics, though he received a positive reaction from a visiting U.S. official.

The United States, Taiwan's most crucial international supporter and arms provider despite lacking formal diplomatic relations, has been encouraging Taiwanese tech firms to heighten their investments as part of a broader U.S. strategy to bolster domestic semiconductor manufacturing. Since Taiwan's participation in the SelectUSA Investment Summit in May, the economy minister's office has been evaluating companies beyond major chipmaker TSMC for additional U.S. investments and found a potential $20 billion.

AI and chip orders are reportedly extremely active, driving this interest, though Kung did not divulge the names of these companies. TSMC recently announced a further $100 billion investment in Arizona, raising its total planned U.S. investment to $265 billion. A U.S. Commerce Department official, while praising the announcement, emphasized the CHIPS Act's role in bolstering the U.S. semiconductor and electronics supply chain, highlighting the significance of these projects in enhancing critical technology capabilities and fostering innovations that will impact the country for decades.