From Fortune:

Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, is a central player in Taiwan’s economy. TSMC’s influence on the country’s politics has come to the forefront as Taiwan prepares for a presidential election on January 13, sparking concerns about the potential impact of foreign investment and geopolitical tensions.

During a live televised debate, candidates for Taiwan’s vice-president referenced TSMC’s international plans, with the Kuomintang party’s vice-presidential candidate claiming that foreign companies are hesitant to invest in Taiwan due to geopolitical uncertainties surrounding the country.

Amidst these concerns, the possibility of Taiwan’s economy being hollowed out was raised, with the Democratic Progressive Party being blamed for stoking tensions with Beijing, and claims that potential superstar performances in Taipei were turned down due to geopolitical risks.

Conversely, the DPP’s vice-presidential candidate defended TSMC, emphasizing the company’s increasing investments in Taiwan and dismissing concerns about the hollowing out of the country’s economy by pointing to investments from companies like Google, Amazon, and Micron.

TSMC’s potential for international expansion, particularly in the U.S., has sparked significant attention and investment. The chipmaker’s expansion plans have created optimism around boosting the American semiconductor industry, despite facing challenges with skilled workers in its Arizona operations.

Amidst the political and economic impact of TSMC’s role in Taiwan, the upcoming presidential election could have significant ramifications for the region, as the DPP leads current polling, running for a third consecutive term in office and advocating for a harsher stance against China, while facing opposition parties advocating for better ties with China.



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