US House Speaker Nancy Pelosi meets with TSMC chairman Mark Liu and others to discuss implementation of the Chips and Science Act during her Taiwan visit
The meeting follows a push by a Taiwanese minister and TSMC board member for Congress to pass the law, arguing that subsidies would determine the pace of TSMC’s Arizona factory buildout. It also takes place as the act’s China-expansion guardrails were already prompting Samsung and SK Hynix to reconsider their China exposure.
First-order effects
TSMC and House leadership gain a direct channel to discuss how the Chips and Science Act’s implementation affects the company’s U.S. manufacturing plans.
The discussion puts TSMC’s Taiwan-based leadership at the center of U.S. subsidy implementation rather than treating chip capacity as a purely domestic industrial-policy question.
Second-order effects
Samsung and SK Hynix face a clearer incentive to calibrate their China operations around the same guardrails that were already driving a reassessment of China exposure.
Customers and suppliers tied to Taiwan’s semiconductor ecosystem must account for political engagement becoming part of the operating environment; shipments to Pegatron were reportedly held by Chinese customs after the visit.
Third-order effects
CHIPS Act implementation is becoming a mechanism for the U.S. to shape where leading Asian chipmakers add capacity and how they manage China exposure.
If this pattern persists, access to U.S. incentives will make semiconductor expansion an increasingly negotiated policy decision among governments and overseas foundry leaders.
The trend: Semiconductor industrial policy is shifting from subsidy legislation to implementation negotiations with the Asian manufacturers that control critical production capacity.
@ByChunHan ... Taiwan tensions highlight the world's dependence on the island's chip industry. In an interview with CNN, TSMC Chairman Mark Liu warned that conflict would render inoperable its factories, which “depend on real-time connection with the outside world.” https://www.w…
Our Congressional delegation had the great privilege of meeting with the Vice President of the Legislative Yuan Tsai Chi-chang here in Taipei. We reiterated our ironclad support for Taiwan's democracy, including on matters of security & stability, economic growth and governance. …
‘TSMC is building a chip factory in Arizona — and considering constructing several on the site — in a project seen as key to U.S. national security’ https://www.washingtonpost.com/ ...
One of Nancy Pelosi's key meetings on her whirlwind tour of Taiwan reportedly is TSMC, the island's most valuable company and world's biggest contract chipmaker https://www.bloomberg.com/...
Breaking: Pelosi set to meet with $TSMC, Taiwan's largest Semi Conductor Manufacturer “To discuss implementation of the recently passed Chips Act, which provides $52 billion of federal subsidies for domestic chip factories” $TSMC is currently building a chip facility in Arizona
TSMC is the most important company in the world (ASML might be 1A) and maybe we should all chill and take it easy before things get worse. Pelosi should check out Thailand or Cambodia instead. Great tourism there, not many semiconductor fabs. https://twitter.com/...
Important story, this. Samsung and SK Hynix, leading Korean chipmakers, are reevaluating investments in China. Why? They've read the US Chips Act and realised they'll have to take a side. And they're choosing the US - by @crsdavies for @FT https://www.ft.com/...
The passing of the Chips Act is a far more significant event in the US/CN imperial competition than the Pelosi visit. It shows that the US is getting serious about re-shoring key strategic industries. If it can be successful in doing so, THEN war... https://www.ft.com/...
“#Intel has lobbied hard against the move to curb US investments in #China's chip sector & in '21 wanted to ⬆️production in China...Yet only #TSMC is making advanced chips in 🇨🇳 at the moment. Its Nanjing facility makes 28nm & 16nm chips, = SMIC's best” https://www.bloomberg.com/…
SEMICONDUCTORS | THE CHIPS ACT CHALLENGE Chipmakers are cheering Washington's long-awaited passage of a bill to provide funding for the U.S. semiconductor industry, but accepting those subsidies could tie their hands when it comes to investments in China. https://asia.nikkei.com/…