Taiwan president decries ‘rumours’ about the island’s chip investment risk

Wed Nov 16 2022
Rachel Long (638 articles)
Taiwan president decries ‘rumours’ about the island’s chip investment risk

Taiwan President Tsai Ing-wen has decried what she called “rumours” about the risk of investing in the island’s semiconductor industry and said the government was working hard to ensure investments continued.

Taiwan, home to the world’s largest contract chipmaker TSMC (2330.TW), as well as several other chip manufacturers, plays an outsized role in providing chips used in everything from cars and smartphones to fighter jets.

But the Chinese military’s menacing of the island to assert Beijing’s sovereignty claims, especially after U.S. House Speaker Nancy Pelosi visited Taipei in August, is causing the chip industry to rethink the risk surrounding Taiwan.

Rick Tsai, the chief executive of Taiwan’s largest chip designer MediaTek Inc (2454.TW), also told Reuters this month that U.S.-China tensions are pushing some manufacturers to talk about expanding part of their supply chain beyond Taiwan, but also said it’s “incremental.”

“At this moment when the world is paying attention to and is concerned about Taiwan, I am very grateful to ASML for investing in Taiwan with concrete actions,” Tsai said in the statement late on Tuesday.

“I believe this has also dispelled the rumours over-hyping Taiwan’s risks,” she added.

Tsai also said she looks forward to “Taiwan’s continued deepening of cooperation with democratic allies to build a safer and more resilient global supply chain.”

ASML did not immediately respond to a request for comment on the meeting.

Taiwan’s Economy Minister Wang Mei-hua told reporters on Wednesday that the recent purchase of more than $4.1 billion of TSMC’s stock by Warren Buffet’s Berkshire Hathaway Inc (BRKa.N) would “give everyone a lot of confidence”.

“I think the worries that have been around recently will pass,” she added.

Tags Economy, Taiwan
Rachel Long

Rachel Long

Rachel Long is our Desk Correspondent covering Stock Markets across the globe. She is based in New York