Last weekend we went apple picking again with the children. What we talked most was the election. I explained to them two simple terms describing Trump's hardened supporters and their opponents: 川粉 (Chuān-fěn), their opponents: 白左 (Bái-zuǒ). They were truly impressed by the way Chinese simplified the expression, two syllables expressing so much.
A few days ago, a friend shared an article about Taiwan Semiconductor Manufacturing Company (TSMC) as a model of successful reshoring to the United States.
TSMC’s decision to expand its manufacturing facilities in the U.S. has been largely driven by geopolitical factors and bolstered by significant support from the CHIPS Act.
The CHIPS Act (Creating Helpful Incentives to Produce Semiconductors), enacted by the U.S. government in 2022 amid rising tensions with China, aims to secure American semiconductor production. With around $52 billion allocated for funding and tax incentives for domestic chip plants, the Act is a cornerstone of the U.S.’s strategy to boost competitiveness in semiconductor technology.
For TSMC’s Arizona project, the U.S. government has committed up to $6.6 billion in direct support under the CHIPS Act, along with up to $5 billion in loans and tax credits. This extensive backing aligns with the U.S.’s broader goals of strengthening domestic semiconductor production, reducing reliance on foreign suppliers, and enhancing national security. TSMC’s Arizona facilities are expected to generate roughly 26,000 jobs.
TSMC’s expansion reflects the complex dynamics of U.S.-China relations. The new Arizona plants are part of a broader reshoring or “friend-shoring” trend, as semiconductor companies reduce geopolitical risks by aligning production with supportive government policies.
While TSMC could feasibly continue its operation without further U.S. funding, recently, TSMC founder Morris Chang discussed some hurdles, noting how escalating geopolitical tensions and free-trade restrictions have increased competition over chip production. As a key supplier to companies like Apple and Nvidia, TSMC now finds itself at the center of major powers striving to secure chip access as tensions with China rise. The company has also navigated U.S. restrictions limiting its supply of advanced chips to Chinese firms, including Huawei.
Finally, could we replicate TSMC's move and have more factories moving back? With the right amount of money, absolutely yes. The Chinese saying "有钱能使鬼推磨" (yǒu qián néng shǐ guǐ tuī mò) — “With money, you can make the devil turn the millstone”— captures this idea perfectly. It suggests that with sufficient financial backing, even the toughest challenges become surmountable.