Taiwanese President Lai Ching-te has lauded TSMC's massive $100 billion investment in the United States as a landmark moment for Taiwan-US relations. This announcement comes amidst escalating geopolitical tensions in the region, particularly concerning China's stance on Taiwan.

President Lai emphasized that the Taiwanese government did not face any pressure from Washington during TSMC's decision-making process regarding the U.S. investment. This statement attempts to alleviate concerns about external influence on the company's strategic moves.

TSMC, the world's leading chipmaker, initially announced the investment plan following threats of tariffs on imported semiconductor chips by then-President Donald Trump. This new investment increases TSMC's total commitment in the U.S. to $165 billion, which the company touts as the largest single foreign direct investment in U.S. history. The scale of this investment underscores the growing importance of semiconductors in the global economy and the strategic competition surrounding their production.

TSMC Chairman and CEO C.C. Wei stated that the expansion is primarily driven by customer demand. He noted that TSMC has expanded internationally, including to Japan and Germany, due to demand from customers in those regions. The increased investment in the U.S. is a direct response to extremely high demand from American clients.

Despite the significant U.S. investment, TSMC is also expanding its production capacity in Taiwan. The company plans to build 11 new production lines this year to meet ongoing demand. Major TSMC clients include tech giants like Nvidia and Apple, highlighting the critical role the company plays in global supply chains.

TSMC's decision to move some production capacity outside of Taiwan has sparked fears that the U.S. is attempting to exert greater control over its operations. The company has faced persistent pressure to diversify its manufacturing locations due to increasing tensions with China. China views Taiwan as a breakaway province and has ramped up military pressure on the island in recent years.

Taiwan's dominance in the semiconductor industry has been described as a "silicon shield," deterring potential aggression from China. The island produces over half of the world's chips, making it a strategically important player in the global economy.