TSMC clarifies rumors of establishing a factory in the Middle East and guarantees that Taiwan's chip technology will not leak abroad.

Recently, some foreign media reported that TSMC plans to establish a factory in the Middle East, and the scale of the chip factory may be similar to that of the factory in Arizona, USA. There are also concerns about the leakage of TSMC's technology due to its global expansion. TSMC clarified various issues at the shareholders' meeting on the 3rd.

In recent weeks, there have been repeated rumors that TSMC is planning to set up a factory in the Middle East. Some foreign media reported that TSMC is re-discussing with US officials to build a chip manufacturing plant in the United Arab Emirates. The media further pointed out that TSMC has held several meetings with the US Middle East envoy and the UAE state-owned investment company. If confirmed, the scale of the chip factory may be similar to that of the factory in Arizona, USA.

TSMC held a shareholders' meeting on the 3rd. Chairman Zophia Wei answered questions from shareholders one by one, including whether there are any plans to set up a factory in the Middle East. Zophia Wei first publicly stated that it would not happen, and humorously said that these rumors are flying everywhere, and he might have to answer rumors about setting up a factory in Africa next time.

In addition, earlier reports from the US market indicated that US officials invited TSMC to invest in Intel's chip factory, although TSMC had publicly denied it. However, coupled with TSMC's expansion of its global layout, it has successively invested in building factories in Japan, the United States, and Germany. The issue of TSMC's technological leakage has continued to become a topic in the market.

In response to whether TSMC's core technology will leak or be stolen during overseas factory establishment, Zophia Wei stated that TSMC's core technology is the result of long-term efforts by 10,000 R&D engineers, along with an equal number of production line engineers who continuously improve and optimize the technology. If secrets were so easy to steal, TSMC would not be what it is today. TSMC's current technological leadership is built on this complex and difficult-to-replicate accumulation of technology.

Regarding the US tariff issue, he emphasized that this is not something TSMC can dominate. Whether the tariff rate is 10%, 15%, or 20%, it will have some impact on TSMC, but not a direct one, as tariffs are borne by importers, while TSMC is an exporter.

He mentioned that tariffs would slightly increase prices, which could lead to reduced demand, thereby affecting TSMC's business. However, given the current strong demand for AI, TSMC's business is very good, and they fear nothing except a decline in the global economy.

Finally, he mentioned that the current demand for AI is very strong, and TSMC's revenue this year will still grow by 24% to 26%. Both revenue and profit will reach new highs, creating greater value for shareholders.

Source: rfi

Original article: https://www.toutiao.com/article/1833905901018124/

Disclaimer: This article only represents the author's personal views.