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First Post
2 days ago
- Business
- First Post
Ticking Taiwan Strait: Waiting for a war everyone sees coming
Taiwan today is a barometer of the state of the liberal international order, the legitimacy of deterrence theory, the stability of the world economy, and the integrity of alliance politics read more Few fault lines in global power politics are as flammable and so consequential as the Taiwan Strait is. War between China and Taiwan is no more a far-off possibility. It is a live variable shaped by daily movements, doctrinal changes, and the steady disintegration of the presumptions behind deterrence. Taiwan today is a barometer of the state of the liberal international order, the legitimacy of deterrence theory, the stability of the world economy, and the integrity of alliance politics. STORY CONTINUES BELOW THIS AD China has until today refrained from military escalation, and the world has kept 'strategic ambiguity', avoidance of unambiguous commitments to Taiwan's defence, but has quietly prepared for the possibility. This has managed the cross-Strait relationship over more than two decades through a precarious equilibrium. However, now there is a breakdown of this equilibrium. Beijing has specifically mandated that the People's Liberation Army (PLA) be ready for an invasion by 2027. Satellite pictures verify the building of forward-operating sites close to the Taiwan Strait and the deployment of nuclear-capable aircraft. For Taiwan, China's grey-zone warfare, i.e., cyber intrusions, economic pressure, and disinformation campaigns, has become a daily reality. Taiwan has responded urgently in parallel. Under record defence spending, doctrinal changes towards asymmetric warfare, and civil mobilisation projects like Kuma Academy, President Lai Ching-te has supervised Taiwan is getting ready to impose costs, postpone conquering, and oppose collapse, not just survive. The real concern, though, is not how effectively Taiwan gets ready. It is, if the rest of the world is ready to back it. Pete Hegseth's clear warning at the Shangri-La Dialogue that a Chinese invasion 'could be imminent' marks the demise of strategic ambiguity as a policy concept. The U.S. has embraced uncertainty since the 1979 Taiwan Relations Act to discourage Taipei from attesting to independence and Beijing from invading. But in a reality where China is openly preparing for war and Taiwan is progressively de facto autonomous, this dual deterrence theory loses relevance. Once a useful strategic instrument, ambiguity today runs the danger of being seen as incoherence. As China probes red lines and practices amphibious assaults, clarity—not caution—may be the better deterrent. After all, deterrent is about resolve rather than only military power. How can enemies be supposed to be discouraged if allies are unsure of what the United States will do should a Chinese attack? STORY CONTINUES BELOW THIS AD Further, Taiwan generates more than 90 per cent of the most advanced chips and over 60 per cent of the semiconductors used worldwide. One cannot stress its centrality to the global tech economy. Global supply systems would not only be interrupted but also collapse if Taiwan were attacked or blockaded. Industries, including automotive ones, would stop. The development of artificial intelligence would pause. From weapons to cellphones, everything would suffer manufacturing delays. Taiwan becomes a 'choke-point economy' from this vulnerability. Unlike oil-rich Gulf states, Taiwan's geopolitical significance is found inside its fabs, particularly TSMC, the crown jewel of worldwide chip production, not on its territory. Thus, a war over Taiwan is a systematic shock to globalisation itself rather than a regional conflict. None of the 21st-century economic security plans could afford to overlook this. Furthermore, a model of 21st-century warfare is the Taiwan crisis. China's approach is hybrid, not only kinetic. It combines cyberattacks on Taiwanese infrastructure, electromagnetic warfare to disrupt communication, disinformation campaigns on social media, and economic coercion to compel companies and countries interacting with Taipei. Under this framework, Taiwan's security extends beyond force deployments and naval readiness to encompass data protection, satellite resilience, and psychological preparedness. In any future battle, the first salvos might not be missiles but viruses. Emphasising 'whole-of-society' resilience, Taiwan reflects this knowledge. The battlefield of the future is virtual as much as physical. STORY CONTINUES BELOW THIS AD Taiwan is a normative challenge to the Chinese Communist Party (CCP), not only a geopolitical puzzle. With its vibrant democracy with civil liberties, free elections, and strong institutions, Taiwan presents a mirror reflecting what China might have been. For Xi Jinping, letting a culturally Chinese democracy blossom right off his shore is ideologically unacceptable. Taiwan's existence negates the CCP's assertion that authoritarianism is required for order and development. This renders the Taiwan problem existential for Beijing rather than merely a geographical one. It also qualifies Taiwan as a litmus test for democratic solidarity. Where else can moral authority be claimed if the world cannot defend a free, open civilisation threatened by an expansionist autocracy? Furthermore, Japan, Australia, the Philippines, and South Korea are becoming increasingly unstable. Japan promised to double its defence budget. Under AUKUS, Australia has escalated military cooperation. The U.S. is being granted access to critical military bases by the Philippines. Still, behind this activity is uncertainty. One can count on the United States. Will Europe get involved? With what threshold should one intervene? STORY CONTINUES BELOW THIS AD Many ASEAN nations, meanwhile, still hedge. Strong trade ties with China help them to postpone confrontation. But hedging, by nature, gets more difficult as uncertainty disappears. As Hegseth pointed out, depending on China economically hampers crisis decision-making. Hedging becomes paralysis eventually. The idea of deterrence relies on a rational actor model, in which nations precisely estimate the costs and benefits. But the Taiwan issue exposes the limits of this approach. China would consider the symbolic loss of Taiwan as more important than any financial outlay. Domestically, political dynamics—nationalism, elite competitiveness, historical grievance—may overwhelm reason. In democratic societies, too, the populace may be reluctant to participate in distant battles, particularly after protracted operations in Afghanistan or Iraq. This results in deterrence tiredness, a hollowing out of trustworthiness resulting from perception rather than competence. China could be planning on such deterioration. In strategic analysis, the human cost is too often absent. Taiwan has a population of 23 million individuals. Long-term psychological anguish, refugee crises across East Asia, and thousands of civilian casualties might all follow from an invasion. Taiwan is an island; there are no overland escape routes unlike Ukraine. Even as the likelihood of violence rises, the humanitarian preparedness for a Taiwan contingency is essentially non-existent. STORY CONTINUES BELOW THIS AD Finally, the waiting game is ending. Taiwan is a moral challenge, a test of will, a fault line of world order, not only a line on the map. Strategic ambiguity is an invitation to miscalculation rather than a cover. The world must choose today whether deterrence is to be revived or merely remembered. Aditya Sinha (X:@adityasinha004) is OSD, Research at Economic Advisory Council to the Prime Minister. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.
Epoch Times
23-05-2025
- Politics
- Epoch Times
Lawmakers Call on Hotel Giants to Stop Using ‘Taiwan, China' Label
Two Republican lawmakers are urging Hilton, Marriott, and Hyatt to drop their use of the phrase 'Taiwan, China' to refer to Taiwan on their websites and promotional materials, questioning whether this wording was influenced or requested by Beijing. Rep. John Moolenaar (R-Mich.) and Sen. Marsha Blackburn (R-Tenn.) 'Using terminology such as 'Taiwan, China,' gives false credence to the PRC's position of authority and sovereignty over Taiwan and implies that Taiwan is the property of the PRC,' the lawmakers wrote, using the acronym of China's official name, People's Republic of China. 'Not only does this directly contradict U.S. policy, but it also undermines Taiwan's democratic system.' Moolenaar is the chairman of the House Select Committee on the Chinese Communist Party. Blackburn is a member of the Senate Finance and Senate Judiciary committees. The Chinese Communist Party (CCP) has been known for pressuring organizations and companies to refer to Taiwan with such names as 'Taiwan, China' or 'Chinese Taipei,' as part of its broader efforts to isolate Taiwan in the international community. One such Related Stories 5/22/2025 5/19/2025 Taiwan is a de facto independent nation with its own military, constitution, and democratically elected government. The CCP, which has never ruled Taiwan, considers the self-governing island a 'wayward province' that should be united with the mainland. Moolenaar and Blackburn pointed out that the U.S. government supports Taiwan's participation on the global stage through the Taiwan Relations Act, a legislation signed into law by President Jimmy Carter in April 1979 after Washington changed diplomatic recognition from Taipei to Beijing earlier that year. 'This [U.S.–Taiwan] relationship is of the utmost importance to the economic and national security of the United States, and the government and the private sector alike must take steps to bolster and support Taiwan, one of our most important allies in the region,' they wrote. To show that there is widespread support for Taiwan within the federal government, the lawmakers cited a 'This [2024] letter followed consistent action from President [Donald] Trump and every president—from both parties—since President Carter,' the May 21 letter reads. The lawmakers said the three hotel chains should follow other major U.S. companies that have correctly identified Taiwan. 'We urge Hilton, Marriott, and Hyatt to review this practice and ensure that your companies' language on both U.S. and Taiwan-hosted websites properly reflects long-standing U.S. policy,' they said. 'This includes avoiding the use of 'Taiwan, China.'' The lawmakers requested the three hotel chains to answer three questions before June 20, including whether the decision to use the term 'Taiwan, China' was 'influenced by any instructions, guidelines, requests, or suggestions from the PRC government or related entities.' They also asked whether the hotels would make a correction and commit to referring to Taiwan as 'Taiwan.' Taiwanese Foreign Minister Lin Chia-lung thanked the lawmakers for voicing support for Taiwan, in a statement to the local government-run Central News Agency on May 22. 'For a long time, the Chinese government has used economic coercion against international companies to force them to comply with its false political claims,' Lin said. 'The [Taiwanese] government continues to pay close attention to and take seriously the foreign companies that mislabel Taiwan's name,' he said, adding that his ministry and the island's overseas missions have actively sought name changes to uphold the island's sovereignty. The Epoch Times contacted Hilton, Marriott, and Hyatt for comment and did not receive a response by publication time.
South China Morning Post
04-04-2025
- Politics
- South China Morning Post
Donald Trump's pick for Beijing envoy affirms US commitment to one-China policy
President Donald Trump's nominee for ambassador to Beijing said on Thursday that the US leader's strategy for China would involve 'some pain' and claimed that allies must do more to counter the Asian country. Advertisement Speaking in a confirmation hearing before the Senate Foreign Relations Committee, David Perdue, a former Republican senator representing Georgia, also affirmed Washington's commitment to a one-China policy. 'We're going to continue to honour the one-China policy, as stated in the Taiwan Relations Act, also backed up by the three communiques and the six assurances,' Perdue said. The Taiwan Relations Act was signed by then-president Jimmy Carter shortly after Washington switched official diplomatic relations from Taipei to Beijing in 1979, and obligates the US government to support Taiwan's defence capabilities. However, it does not specifically articulate a one-China policy, which is spelled out in the first of the communiques – agreements between the US and China that formalised the diplomatic switch. Advertisement Perdue's reference to the 'six assurances' relates to commitments that Washington made to Taipei in 1982 that it would disregard Beijing's opposition to US arms sales to the island.
CNN
14-03-2025
- Business
- CNN
Fear and resignation after ‘world's most powerful company' pays Trump a $100 billion ‘protection fee'
It was a surprise ceremony at the White House presided over by President Donald Trump to unveil a $100 billion investment from what he called the world's most powerful company, Taiwan Semiconductor Manufacturing Company (TSMC). But nearly 8,000 miles away, the mood was far from celebratory. Instead, the shock announcement last week has reignited fears in Taiwan about losing its crown jewel, its world-beating semiconductor industry, to the US due to political pressure. The island democracy's former President Ma Ying-jeou wasted no time in accusing the ruling Democratic Progressive Party (DPP) of 'selling TSMC' to Trump as a 'protection fee.' 'This is a major national security crisis,' Ma, a member of the opposition Kuomintang (KMT), wrote on his Facebook page on March 4, shortly after the White House signing ceremony. It will ''have a significant negative impact on people's confidence, cross-strait relations and Taiwan's future geopolitical position.' To reassure the public, Taiwan President Lai Ching-te appeared alongside TSMC CEO CC Wei last week at Taipei's presidential office, saying the company's US investment would not undermine its commitment to and planned expansion in its home base. TSMC produces more than 90% of the world's advanced microchips, which power everything from smartphones and artificial intelligence to weapons. That's why many in Taiwan believe that global dependence on its semiconductors serves as a 'silicon shield,' a deterrent against a potential Chinese invasion. China's ruling Communist Party claims Taiwan as part of its territory despite having never controlled it and has vowed to take control of the self-governing island, by force if necessary. Beijing has in recent years escalated its military activities around Taiwan, regularly flying fighter jets and conducting exercises in waters near the island. Taiwan relies on US military and political support. Under the Taiwan Relations Act, the US is legally obligated to provide Taiwan with the means to defend itself against a possible attack by China. But Trump's recent rhetoric has cast uncertainty over the future of US-Taiwan relations. He has repeatedly accused Taiwan of 'stealing' the US semiconductor industry, a claim that is widely disputed, while saying outright that Taiwan should pay the US for 'protection.' For many on the self-governing island, the phrase 'Ukraine today, Taiwan tomorrow' has increasingly resonated in recent weeks as they watch Trump upend longstanding US policy by playing up Kremlin rhetoric and warming to Moscow, while alienating traditional European allies and Kyiv. Taiwanese see parallels between their democracy and Ukraine, with both facing existential threats from aggressive, expansionist neighbors. Washington earlier this month abruptly suspended military aid to Ukraine following a heated exchange between Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelensky at the White House, just hours after the cheerful TSMC ceremony. It reinstated aid this week after Ukraine accepted a 30-day US-proposed ceasefire. The White House has also pressed Zelensky to sign a deal giving the US access to Kyiv's untapped mineral riches. Tammy Chao, a retiree, expressed deep concern to CNN about Taiwan's security after TSMC's announcement, likening Trump's approach to his handling of Ukraine. She described him as a 'dealer' who might eventually treat Taiwan as a bargaining chip. 'Taiwan, pretty soon just like [what] he said to Zelensky, 'you have no cards to play,' and Taiwan is not gonna have cards to play,' she said. 'TSMC was the best card.' But others appear less concerned. Fred Lin, a finance industry professional, said he believed TSMC came to this decision prudently. 'Who doesn't pay protection fees to the US? No doubt It is a form of protection fee, that we can understand, but that's the reality of international politics,' he said. Trump administration officials, however, have also said they need to dial down involvement in European security to focus on Asia – and the threat from China. Prior to his election, Vance was explicit in his concerns that US support for Ukraine could hinder its ability to aid Taiwan in the event of a Chinese attack. Researchers say there are limits to comparisons between Ukraine and Taiwan's security circumstances and believe the island's security is influenced by multiple factors beyond its semiconductor industry, including China's broader geopolitical ambition and Taiwan's strategic location. Whether China takes military action against Taiwan is ultimately driven by its core interests, which are not solely dependent on the island's role in global chip production, said Min-yen Chiang, a nonresident fellow at the Research Institute for Democracy, Society, and Emerging Technology, a government-funded think tank in Taipei. He referenced the time in 1950 when the US sent its Seventh Fleet to the Taiwan Strait early on during the Korean War to deter China from invading Taiwan. The strategic move by then-President Harry Truman neutralized the Taiwan Strait and ensured the Korean War did not trigger a wider conflict, maintaining stability in the Asia-Pacific region. 'Taiwan then had no semiconductor industry at all,' he said. Last week, President Lai said Taipei did not 'face any pressure from Washington' in doing the TSMC deal, which the company said was the biggest such investment in the US ever made by a non-American firm. Standing next to him, Wei attributed the increased investment to 'strong demand' from American customers such as Apple, Nvidia, AMD, Qualcomm and Broadcom that wanted to reduce potential supply chain risks by having chips made locally. He also added that TSMC was 'not afraid' of Trump potentially scrapping the subsidies from the Chips Act, stressing that the company's decision to invest in the US was driven by customer needs. TSMC was awarded $6.5 billion in grants for its first three plants in Arizona under the bipartisan Chips Act, spearheaded by the Biden administration, which allocated $39 billion in federal funding to boost domestic semiconductor manufacturing. 'We are the best wherever we build our fabs,' Wei added, referring to semiconductor fabrication plants. Along with the additional three manufacturing facilities, the new investment also promised two chip packaging plants and a research and development center to improve the production process technology. Wei clarified that the development of the cutting-edge next generation chipmaking technology would remain in Taiwan and would still be 10 times bigger than the US facilities. Semiconductor analysts applauded the company for making an 'agile' decision. TF International Securities analyst Ming-Chi Kuo praised TSMC in an online analysis, calling it the 'most successful non-US company in negotiations with the Trump administration.' 'Though the $100 billion investment seems massive, the lack of details provides the flexibility for spending based on future conditions, softening the impact on profitability,' Kuo wrote. TSMC's investment has mostly alleviated Trump's concerns, according to Eric Chen, an analyst at Digitimes Research, a market research firm. 'But of course, we have no way of knowing when Trump might change his stance — he's notorious for making sudden U-turns,' he said. TSMC's $100 billion investment marks the latest in a wave of businesses committing massive sums to the US. But it stands out as one of the first major foreign firms to do so, and Trump claims more such investments are on the way. In contrast to his predecessor Biden's approach of incentivizing domestic investment through subsidies, Trump prefers to weaponize tariffs. So far, it has proven effective. Trump has previously threatened to impose 25% tariffs on semiconductors, along with automobiles and pharmaceuticals as early as next month. At the announcement of TSMC's investment, Commerce Secretary Howard Lutnick said the company chose to expand in the US due to the threat of tariffs, and were not given additional grants. In late February, Apple pledged $500 billion to expand facilities, manufacturing and projects across the US over the next four years. Oracle, OpenAI and SoftBank announced in January that they would invest $500 billion to create a new company that would build artificial intelligence infrastructure in the US. With TSMC's new investment in the US, Trump is expected to turn up the heat on other major companies, said Chang-Tai Hsieh, an economist at the University of Chicago's Booth School of Business. He said it puts added pressure on Samsung and Intel, the two other major producers of computing and AI chips in the world. South Korea's SK Hynix, another key player in memory chips along with Samsung, are also expected to feel the squeeze. Samsung has previously pledged to invest $37 billion in Texas, while SK Hynix announced plans to build a $3.87 billion chip packaging plant in Indiana last year. Samsung and SK Hynix declined to comment. Hsieh said it is obvious that companies like TSMC and others will have to 'do whatever they can to make Trump happy.' But he also warned of the risks associated with such concessions. 'Once you agree to blackmail, then there's no end of it,' he said. CNN's Simone McCarthy contributed reporting.
Yahoo
13-03-2025
- Business
- Yahoo
Fear and resignation after ‘world's most powerful company' pays Trump a $100 billion ‘protection fee'
It was a surprise ceremony at the White House presided over by President Donald Trump to unveil a $100 billion investment from what he called the world's most powerful company, Taiwan Semiconductor Manufacturing Company (TSMC). But nearly 8,000 miles away, the mood was far from celebratory. Instead, the shock announcement last week has reignited fears in Taiwan about losing its crown jewel, its world-beating semiconductor industry, to the US due to political pressure. The island democracy's former President Ma Ying-jeou wasted no time in accusing the ruling Democratic Progressive Party (DPP) of 'selling TSMC' to Trump as a 'protection fee.' 'This is a major national security crisis,' Ma, a member of the opposition Kuomintang (KMT), wrote on his Facebook page on March 4, shortly after the White House signing ceremony. It will ''have a significant negative impact on people's confidence, cross-strait relations and Taiwan's future geopolitical position.' To reassure the public, Taiwan President Lai Ching-te appeared alongside TSMC CEO CC Wei last week at Taipei's presidential office, saying the company's US investment would not undermine its commitment to and planned expansion in its home base. TSMC produces more than 90% of the world's advanced microchips, which power everything from smartphones and artificial intelligence to weapons. That's why many in Taiwan believe that global dependence on its semiconductors serves as a 'silicon shield,' a deterrent against a potential Chinese invasion. China's ruling Communist Party claims Taiwan as part of its territory despite having never controlled it and has vowed to take control of the self-governing island, by force if necessary. Beijing has in recent years escalated its military activities around Taiwan, regularly flying fighter jets and conducting exercises in waters near the island. Taiwan relies on US military and political support. Under the Taiwan Relations Act, the US is legally obligated to provide Taiwan with the means to defend itself against a possible attack by China. But Trump's recent rhetoric has cast uncertainty over the future of US-Taiwan relations. He has repeatedly accused Taiwan of 'stealing' the US semiconductor industry, a claim that is widely disputed, while saying outright that Taiwan should pay the US for 'protection.' For many on the self-governing island, the phrase 'Ukraine today, Taiwan tomorrow' has increasingly resonated in recent weeks as they watch Trump upend longstanding US policy by playing up Kremlin rhetoric and warming to Moscow, while alienating traditional European allies and Kyiv. Taiwanese see parallels between their democracy and Ukraine, with both facing existential threats from aggressive, expansionist neighbors. Washington earlier this month abruptly suspended military aid to Ukraine following a heated exchange between Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelensky at the White House, just hours after the cheerful TSMC ceremony. It reinstated aid this week after Ukraine accepted a 30-day US-proposed ceasefire. The White House has also pressed Zelensky to sign a deal giving the US access to Kyiv's untapped mineral riches. Tammy Chao, a retiree, expressed deep concern to CNN about Taiwan's security after TSMC's announcement, likening Trump's approach to his handling of Ukraine. She described him as a 'dealer' who might eventually treat Taiwan as a bargaining chip. 'Taiwan, pretty soon just like [what] he said to Zelensky, 'you have no cards to play,' and Taiwan is not gonna have cards to play,' she said. 'TSMC was the best card.' But others appear less concerned. Fred Lin, a finance industry professional, said he believed TSMC came to this decision prudently. 'Who doesn't pay protection fees to the US? No doubt It is a form of protection fee, that we can understand, but that's the reality of international politics,' he said. Trump administration officials, however, have also said they need to dial down involvement in European security to focus on Asia – and the threat from China. Prior to his election, Vance was explicit in his concerns that US support for Ukraine could hinder its ability to aid Taiwan in the event of a Chinese attack. Researchers say there are limits to comparisons between Ukraine and Taiwan's security circumstances and believe the island's security is influenced by multiple factors beyond its semiconductor industry, including China's broader geopolitical ambition and Taiwan's strategic location. Whether China takes military action against Taiwan is ultimately driven by its core interests, which are not solely dependent on the island's role in global chip production, said Min-yen Chiang, a nonresident fellow at the Research Institute for Democracy, Society, and Emerging Technology, a government-funded think tank in Taipei. He referenced the time in 1950 when the US sent its Seventh Fleet to the Taiwan Strait early on during the Korean War to deter China from invading Taiwan. The strategic move by then-President Harry Truman neutralized the Taiwan Strait and ensured the Korean War did not trigger a wider conflict, maintaining stability in the Asia-Pacific region. 'Taiwan then had no semiconductor industry at all,' he said. Last week, President Lai said Taipei did not 'face any pressure from Washington' in doing the TSMC deal, which the company said was the biggest such investment in the US ever made by a non-American firm. Standing next to him, Wei attributed the increased investment to 'strong demand' from American customers such as Apple, Nvidia, AMD, Qualcomm and Broadcom that wanted to reduce potential supply chain risks by having chips made locally. TSMC was awarded $6.5 billion in grants for its first three plants in Arizona under the bipartisan Chips Act, spearheaded by the Biden administration, which allocated $39 billion in federal funding to boost domestic semiconductor manufacturing. 'We are the best wherever we build our fabs,' Wei added, referring to semiconductor fabrication plants. Along with the additional three manufacturing facilities, the new investment also promised two chip packaging plants and a research and development center to improve the production process technology. Wei clarified that the development of the cutting-edge next generation chipmaking technology would remain in Taiwan and would still be 10 times bigger than the US facilities. Semiconductor analysts applauded the company for making an 'agile' decision. TF International Securities analyst Ming-Chi Kuo praised TSMC in an online analysis, calling it the 'most successful non-US company in negotiations with the Trump administration.' 'Though the $100 billion investment seems massive, the lack of details provides the flexibility for spending based on future conditions, softening the impact on profitability,' Kuo wrote. TSMC's investment has mostly alleviated Trump's concerns, according to Eric Chen, an analyst at Digitimes Research, a market research firm. 'But of course, we have no way of knowing when Trump might change his stance — he's notorious for making sudden U-turns,' he said. He also added that TSMC was 'not afraid' of Trump potentially scrapping the subsidies from the Chips Act, stressing that the company's decision to invest in the US was driven by customer needs. TSMC's $100 billion investment marks the latest in a wave of businesses committing massive sums to the US. But it stands out as one of the first major foreign firms to do so, and Trump claims more such investments are on the way. In contrast to his predecessor Biden's approach of incentivizing domestic investment through subsidies, Trump prefers to weaponize tariffs. So far, it has proven effective. Trump has previously threatened to impose 25% tariffs on semiconductors, along with automobiles and pharmaceuticals as early as next month. At the announcement of TSMC's investment, Commerce Secretary Howard Lutnick said the company chose to expand in the US due to the threat of tariffs, and were not given additional grants. In late February, Apple pledged $500 billion to expand facilities, manufacturing and projects across the US over the next four years. Oracle, OpenAI and SoftBank announced in January that they would invest $500 billion to create a new company that would build artificial intelligence infrastructure in the US. With TSMC's new investment in the US, Trump is expected to turn up the heat on other major companies, said Chang-Tai Hsieh, an economist at the University of Chicago's Booth School of Business. He said it puts added pressure on Samsung and Intel, the two other major producers of computing and AI chips in the world. South Korea's SK Hynix, another key player in memory chips along with Samsung, are also expected to feel the squeeze. Samsung has previously pledged to invest $37 billion in Texas, while SK Hynix announced plans to build a $3.87 billion chip packaging plant in Indiana last year. Samsung and SK Hynix declined to comment. Hsieh said it is obvious that companies like TSMC and others will have to 'do whatever they can to make Trump happy.' But he also warned of the risks associated with such concessions. 'Once you agree to blackmail, then there's no end of it,' he said. CNN's Simone McCarthy contributed reporting.
