Taipei: The Ministry of Economic Affairs (MOEA) announced Thursday that it has given the green light to a US$20 billion investment by Taiwan Semiconductor Manufacturing Co. (TSMC) into TSMC Arizona, its wholly owned U.S. subsidiary. This approval is part of a larger effort to expand TSMC's operations in the United States, which now totals US$44 billion.
According to Focus Taiwan, this recent approval was one of nine major investment projects, both domestic and international, that were sanctioned during a meeting conducted by the MOEA's Department of Investment Review. This marks the sixth instance of TSMC's investments in the United States receiving approval, demonstrating a significant commitment to its U.S. operations.
The US$20 billion will be allocated for the construction of a 12-inch wafer fabrication facility and an advanced packaging plant in Arizona. Further specifics regarding the project are anticipated to be disclosed by TSMC in the near future.
In addition to TSMC's Arizona investment, the department approved seven other outbound projects valued at approximately US$23.05 billion. Among these, Nanya Technology Corp. received approval to invest US$1 billion into its subsidiary in the British Virgin Islands, aimed at U.S. dollar time deposits and minimizing foreign exchange hedging costs.
Quanta Computer Inc. was granted permission to invest US$600 million into Quanta International Ltd., based in the Cayman Islands, which will subsequently invest in U.S.-based Quanta Manufacturing Inc. for operations related to computer and peripheral assembly.
Moreover, Lite-On Technology Corp. secured approval for a US$919 million investment into its U.S. subsidiary, Lite-On Inc., to bolster the production and sales of optoelectronic products, server power solutions, and other power products.
Other approved outbound investments included Formosa Plastics Corp.'s internal restructuring in the U.S., a 1.6 billion Thai baht expansion by Taiwan Union Technology Corp. in Thailand, and a £143 million capital injection by Fubon Life Insurance Co. into its Jersey subsidiary for real estate leasing.
The department also sanctioned two foreign investment projects in Taiwan worth a total of NT$6.75 billion. This includes a NT$3.58 billion capital injection from Lilly Nederland Holding B.V., based in the Netherlands, into Eli Lilly Taiwan for expanding pharmaceutical wholesale operations. The second project involves a NT$3.17 billion investment by the U.K.-registered Formosa 6 Holdings Company Ltd. into Formosa 6 International Investment Co., Ltd. for general investment purposes.