Taiwan Semiconductor Manufacturing Co. (TSMC) has secured official approval from Taiwan's Ministry of Economic Affairs (MOEA) to invest USD 20 billion in its wholly owned Arizona subsidiary. The clearance, granted during a Department of Investment Review meeting on Thursday, marks the sixth such approval for TSMC's US operations, bringing the total authorized investment in its American facilities to USD 44 billion.
Scope of the New Investment
The newly approved funds will be used to construct a 12-inch wafer fabrication plant and an advanced packaging facility in Arizona, according to the MOEA's Department of Investment Review. Specific details regarding timelines and capacity are expected to be announced by TSMC in due course. The USD 20 billion allocation represents the overwhelming majority of the total international investment packages processed during the session, which amounted to approximately USD 23.05 billion across seven outbound projects.
Other Major Approvals
Alongside TSMC, several other Taiwanese tech and manufacturing firms received clearance for overseas expansions. Nanya Technology Corp. won approval to inject USD 1 billion into its British Virgin Islands subsidiary, Nanya Technology International Ltd., primarily to invest in US dollar time deposits and reduce foreign exchange hedging costs. Electronics manufacturer Quanta Computer Inc. received the green light to invest USD 600 million into Cayman Islands-based Quanta International Ltd., with funds eventually flowing to US-based Quanta Manufacturing Inc. for computer and peripheral assembly operations.
Lite-On Technology Corp. secured approval for a USD 919 million capital injection into its US subsidiary, Lite-On Inc., targeting the manufacture and sale of optoelectronic products and server power solutions. Other outbound packages included an internal US restructuring by Formosa Plastics Corp., a 1.6 billion Thai baht (USD 49.48 million) expansion by Taiwan Union Technology Corp. in Thailand, and a £143 million (USD 193 million) capital injection by Fubon Life Insurance Co. into its Jersey subsidiary for real estate leasing.
Inbound Investment Approved
The review board also authorized two foreign investment projects in Taiwan totaling NT$6.75 billion (USD 211.43 million). This included an NT$3.58 billion (USD 118 million) capital injection into Eli Lilly Taiwan by its Dutch parent, Lilly Nederland Holding B.V., and an NT$3.17 billion (USD 104.6 million) investment by UK-registered Formosa 6 Holdings Company Ltd. into Formosa 6 International Investment Co., Ltd.
