Why analysts believed TSMC was looking elsewhere

The China Post
Date: March 21, 2017
By: The China Post news staff

TAIPEI, Taiwan — Local media reports have pointed to several reasons why the world-leading chip maker may consider choosing the U.S. over Taiwan as the location for their new manufacturing site.

One variable may be Taiwan’s water and electricity supply.

Electricity reserve margins dropped to under 6 percent last year, signaling electricity rationing may hit Taiwan. This year reserve capacities may fall even further — even to negative territories — making power rationing almost unavoidable.

In 2015, Morris Chang reportedly considered building Taiwan Semiconductor Manufacturing Company’s (TSMC) own power plant to mitigate risks of a shortage, but the firm later quashed speculation, saying it would be very laborious and difficult. For years, TSMC has called for the Economic Ministry to offer an energy policy that addresses the power shortage fears of companies and investors.   [FULL  STORY]

Leave a Reply

Your email address will not be published. Required fields are marked *

I accept the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.