News
Ministry of economic affairs: 80% of TSMC's advanced process manufacturing to remain in Taiwan by 2036
Saturday, January 17, 2026 at 11:58 AM
The Ministry of Economic Affairs projects that approximately 80% of TSMC's advanced process manufacturing will remain in Taiwan even by 2036, suggesting that a significant portion of its production will not shift to the United States.
Context
Taiwan’s Ministry of Economic Affairs confirmed that TSMC will keep the vast majority of its leading-edge manufacturing in Taiwan, countering "Americanization" concerns. Despite global expansion, the ministry projects Taiwan will retain 85% of advanced production capacity in 2030 and roughly 80% through 2036. This confirms that while TSMC is building facilities in the U.S. and Japan to satisfy regional demand, its primary technological engine and headquarters will remain firmly anchored in its home market.
For investors, this clarifies TSMC's long-term geographic risk and operational strategy. The ministry framed this expansion as a competitive necessity, citing Micron's investment in Taiwan packaging facilities as a parallel example of localized growth. By maintaining 80% of advanced output in Taiwan through 2036, TSMC balances geopolitical pressures for supply chain resilience without diluting the high-margin efficiency of its domestic manufacturing clusters.
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