TSMC needs government permission for overseas joint ventures, Taiwan minister says

TAIPEI : Taiwan Economy Minister Kuo Jyh-huei said on Thursday that chipmaker TSMC would need government permission for any overseas joint ventures, but the government will not interfere in its decisions.

U.S. media have said Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a major supplier to companies such as Apple and Nvidia, has been in talks for a stake in Intel.

Neither company has confirmed the talks, but U.S. President Donald Trump has criticised Taiwan for taking away American semiconductor business and says he wants the industry back in his country.

Speaking to reporters in Taipei, Kuo said that "no one can shake the foundations" of Taiwan's semiconductor industry.

"We have to have confidence in TSMC, and the government will fully support the 'sacred mountain protecting the country," he added, using an expression that refers both to the importance of the chip sector and TSMC to Taiwan's economy.

The government will not interfere in TSMC's decisions, Kuo said.

"For TSMC to go into the world and have a joint venture in any location, it definitely needs government permission," he added.

Large overseas investments need to be approved by Taiwan's economy ministry.

TSMC is already in the process of investing $65 billion in new factories in the U.s. state of Arizona.

Taiwan, which runs a large trade surplus with the United States, could also be subject to wide-ranging import tariffs Trump has threatened to impose to deal with trade imbalances.

Kuo said the ministry was collecting information for government negotiators to talk to the Trump administration on the tariffs issue to seek the best conditions for Taiwanese companies, but he declined to comment on the contents of the talks.