At the opening of the U.S. pavilion at the SEMICON trade show in Taipei, Taiwan Economy Minister Kung Ming‑hsin said Taiwanese companies are “very actively” expanding their U.S. footprints, adding roughly $20 billion in new projects. The announcement follows a fresh assessment by the ministry of firms—beyond the flagship chipmaker TSMC—that could deepen ties with American manufacturing.
AI and chip demand fuel the surge
Kung cited “extremely lively” orders for artificial‑intelligence applications and semiconductor components as the primary catalyst for the new investment wave. While he did not name the specific companies, the ministry’s review since May identified a substantial pool of potential investors ready to commit capital to U.S. facilities.
U.S. officials applaud the partnership
Bill Frauenhofer, executive director of semiconductor investment and innovation at the U.S. Commerce Department, praised the development, saying it “demonstrates our continued shared commitment to a secure, resilient and innovative semiconductor and electronics supply chain.” He added that the projects will strengthen critical technology capabilities in the United States and drive innovations that will shape the collective future for decades.
Context of the CHIPS Act and broader strategy
The announcement aligns with the U.S. CHIPS Act, a federal program aimed at boosting domestic semiconductor manufacturing and reducing reliance on foreign supply chains. Earlier this year, Taiwan Semiconductor Manufacturing Co. (TSMC) disclosed a $100 billion investment in Arizona, bringing its total planned U.S. spend to $265 billion.
Political backdrop
President Donald Trump has previously criticized Taiwan for allegedly “stealing” American semiconductor business, a charge Taiwan’s government rejects as unfair. Nonetheless, both governments continue to encourage Taiwanese investment as a cornerstone of the bilateral economic relationship.
The new $20 billion pledge underscores the growing interdependence of U.S. and Taiwanese technology sectors, especially as AI applications accelerate demand for advanced chips. It also reflects a shared strategic goal: securing a resilient supply chain that supports American industry and national security.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
