Given the imminent risk of a Chinese invasion of Taiwan, TSMC is also trying to avoid a real shutdown in production. According to the Financial Times website, the corporation is investing in a new factory in Japan, further deepening its partnerships with the country’s tech companies and also seeking to stay connected to the Western market.

According to the information posted on the website, meetings were held on the construction of a plant in Kumamoto, in the south of the country. The information has not been confirmed by the Japanese government or even by the company, however, rumors indicate that the agreement has already been closed and more details about the movement should be revealed soon. The site also claims that six other chip companies in Taiwan will also go to the Land of the Rising Sun.

The announcement could be made during the 49th meeting of the G7 summit to be held in Hiroshima in 2023. In the presence of the heads of state of France, Britain, Germany, the US, Italy, Canada and members of the European Union, concerns about China will be one of the main discussions, as will other topics such as continued global economic instability.

TSMC Challenge in Taiwan

There are several issues that TSMC is currently facing, such as excess inventory from NVIDIA and the possibility of not meeting Apple’s demand for its future smartphones. However, the greatest concern remains the threat of China’s invasion of Taiwan, which has self-declared independence but which the Chinese government does not recognize and does not intend to return. They have already shown that they will use force if necessary, which implies even greater global tensions.

US politicians also said they would retaliate by destroying a TSMC plant in the country if its technology falls into the hands of the Chinese military. However, given that Russia’s invasion of Ukraine has not resulted in any effective action against them, China is confident they will go unpunished for risking nuclear war. Of course, there will be economic consequences – but this is not part of their fears to the extent of avoiding an impending attack.

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Source: 9to5 Mac

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