Taiwan's Department of Investment Review (DIR) under the Ministry of Economic Affairs (MOEA) has approved Taiwan Semiconductor Manufacturing Company's (TSMC) US$20 billion capital injection into its US subsidiary TSMC Arizona.
The approval marks the sixth time Taiwanese authorities have cleared TSMC's investment plans for its US subsidiary, bringing the cumulative approved investment amount for the US operations to US$44 billion.
US President Donald Trump recently said Taiwan will double the scale of wafer fabs under construction in Arizona and that US chip market share is expected to increase to 50% before the end of his term.
The DIR approved nine major investment cases on July 2, including two foreign investment projects and seven outbound investment projects. Total approved outbound investment amounted to approximately US$23.05 billion. In addition to TSMC's single US$20 billion investment project, the approvals also included US-bound investments by Formosa Plastics, Quanta Computer, and Lite-On Technology.
The DIR stated that it approved the US$20 billion capital injection by TSMC into TSMC Arizona to build a 12-inch wafer fab and an advanced packaging plant in Arizona.
Nan Ya Plastics was approved for a US$1 billion capital injection into Nanya Technology International, based in the British Virgin Islands, primarily for US dollar time deposits and to reduce foreign exchange hedging costs.
Quanta was cleared to invest US$600 million in Cayman Islands-based Quanta International Limited, which will in turn invest in US-based Quanta Manufacturing for computer and peripheral equipment assembly and processing operations.
Lite-On received approval to inject US$919 million into its US Lite-On subsidiary for the sales and manufacturing of optoelectronics products, server power solutions, and power supply products.
Meanwhile, Formosa Plastics will use its existing stake in US-based Formosa Industries, valued at approximately US$292 million, to subscribe to new shares issued by Formosa Plastics, USA.
Taiwan Union Technology was approved to inject THB1.6 billion (approx. US$48.05 million) into its Thai subsidiary for the production of copper clad laminates (CCL) and prepregs (PP).
Fubon Life Insurance received approval to inject GBP143 million (approx. US$190.16 million) into its Jersey subsidiary to engage in real estate leasing operations.
For foreign investment projects, the DIR approved two cases with a combined value of approximately NT$6.75 billion (approx. US$211.39 million). These included a capital injection of about NT$3.58 billion by Dutch firm Lilly Nederland Holding into Eli Lilly and Company (Taiwan) for pharmaceutical wholesale operations, as well as a capital injection of approximately NT$3.17 billion in the form of monetary claims by UK-based Formosa 6 Holdings into Formosa 6 International Investment for general investment activities.
Article translated by Eifeh Strom and edited by Joseph Chen
