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Taiwan has played down national security concerns after the country’s flagship chip maker, TSMC, signed a $100 billion deal with Donald Trump to invest in the US.
The plans to expand production from TSMC’s hub in Arizona has prompted fears that Taiwan is at risk of relinquishing its “silicon shield” – a concentration of chip manufacturing on the island that acts as an incentive for the US to defend it from Chinese invasion.
TSMC and its customers like Nvidia and Apple may have, at least for the moment, ducked tariffs.
Taiwan’s leaders are also hoping, perhaps naively, that investing in the US will be reciprocated with investments in its own security.
