Taiwan Semiconductor Manufacturing Company's overseas expansion is a necessary extension of the island's national and industrial capabilities, according to veteran technology journalist Lin Hong-wen (林宏文), who dismissed concerns about the chipmaker's international investments as the company continues to dominate global advanced semiconductor manufacturing.
Speaking on the talk show "Fly to the World" hosted by Catherine Lu, Lin argued that TSMC's expansion beyond Taiwan reflects practical constraints rather than strategic missteps. Taiwan lacks sufficient land, talent, utilities, and resources to accommodate the scale of investment required by the AI boom, he said.
TSMC currently controls approximately 90% of advanced chip manufacturing and 90% of AI server orders globally, with no meaningful competitors in cutting-edge processes. The company has projected capital expenditure of $52–56 billion this year, representing annual growth of roughly 40% — a conservative approach compared to its customers, who are expanding at nearly 100% annually.
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"I think TSMC understands this game very well," Lin said, describing the company as the most prudent player in what he called the largest investment cycle in human history.
White House Moment Reveals Taiwan's Strategic Edge
Lin defended TSMC's approach to international expansion, particularly the company's investments in the United States and Japan. In April 2023, TSMC Chairman C.C. Wei (魏哲家) announced $165 billion in U.S. investments at the White House — a moment Lin used to illustrate Taiwan's strategic position.
"If it wasn't C.C. Wei standing there that day, but Samsung's Lee Jae-yong, would investors be happy? Would Taiwanese people think that's good?" Lin asked, referring to the Samsung heir.
The technology expert acknowledged criticism that TSMC faces political pressure to invest in the U.S., where the company has been accused of displacing American workers. However, he characterized such moves as pragmatic business decisions aimed at securing growth and orders, despite operating under political pressure.
Japan Fab a Minor Move; Taiwan Stays Ahead
Lin dismissed concerns about TSMC's planned second fabrication facility in Kumamoto, Japan, which will upgrade to 3-nanometer production. He described this as a relatively small investment with minimal impact on TSMC's overall operations. The Kumamoto facility won't begin trial production of 3-nanometer chips until 2028, by which time Taiwan will likely have advanced to 1.4 or 1.6-nanometer processes.
As the world's sixth-largest company by market capitalisation, TSMC cannot concentrate all investments in a single location, Lin argued. "All other top-10 companies by market value have global operations — they would never put everything just in the United States."
Lin's comments arrive amid strong market momentum, with the TWSE Weighted Index recently surpassing 35,000 points on AI enthusiasm. TSMC shares have rallied toward NT$2,000 per board lot (1,000 shares) levels in recent sessions, while the company guides for revenue growth of close to 30% in 2026, driven by its unmatched leadership in advanced semiconductor processes."
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