◎ Guo Suo
As TSMC continues to expand its presence in the United States, Japan and Europe, "will the semiconductor industry be hollowed out?" has always been one of the most sensitive issues in Taiwanese society. However, a recent foreign investment provides another angle worth observing. Belgian chemical group Solvay has decided to expand Taiwan's semiconductor-grade ultra-high-purity hydrogen peroxide production capacity, which is expected to increase from about 35,000 tons per year to more than 70,000 tons, at least doubling the scale. Ultra-high-purity hydrogen peroxide is an important cleaning chemical in the semiconductor manufacturing process. Foreign companies are willing to invest capital to expand Taiwan's production capacity. It is obviously not the slogan of "protecting the country", but the actual orders in the next few years, the demand for advanced manufacturing processes, and the competitiveness that Taiwan's semiconductor industry cluster still has.
Belgian chemical group Solvay has decided to expand its ultra-high purity hydrogen peroxide production capacity in Taiwan, at least doubling its scale. The picture shows the Brussels headquarters of Solvay, Belgium. (Reuters file photo) This also reminds us that when discussing TSMC’s overseas factories, we cannot just look at where the wafer factories will be moved. Semiconductors have never been an industry that can be replicated by building a factory and installing a few machines. Rather, it is a complete ecosystem composed of equipment, materials, chemicals, components, engineering services, talents, and R&D capabilities. TSMC can establish production bases overseas, but the industrial clusters accumulated in Taiwan over decades cannot be relocated overnight. Nowadays, as Taiwan's advanced manufacturing processes continue to evolve, even international specialty chemical suppliers have chosen to expand their production capacity in Taiwan. This just shows that global companies still believe that Taiwan will be one of the most important core bases for the future semiconductor supply chain. What is really worth observing is not just how much TSMC invests overseas, but also how much capital, technology and production capacity companies around the world are willing to invest in Taiwan.
Of course, a Solvay investment does not prove that Taiwan will no longer have the risk of industrial relocation, nor can it ignore the long-term competition brought about by the United States, Japan and Europe actively establishing local semiconductor supply chains. What Taiwan really wants to do is not to prevent companies from global expansion, but to allow companies to keep their most cutting-edge research and development, most complete supply chains, and next-generation manufacturing processes in Taiwan as a priority after they go global. Stable energy, sufficient talent, a research and development environment, land and water resources, and competitive investment conditions are the foundation for maintaining semiconductor advantages. As long as Taiwan continues to advance towards higher-end processes and key technologies, the increase in overseas wafer fabs will not necessarily mean that Taiwan is weakening. Instead, it may allow the industrial ecosystem with Taiwan as its core to extend to the global market.
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When setting up overseas factories, TSMC cannot just look at where the wafer factories will be moved. The entire industrial cluster cannot be moved overnight. Pictured is TSMC. (European News Agency file photo) Therefore, instead of creating anxiety every day with "TSMC has been moved", it is better to observe where capital is really going. The significance of Solvay's investment in Taiwan is that an international company is using real money to cast a vote of confidence in the future of Taiwan's semiconductor industry. TSMC’s globalization and Taiwan’s semiconductor deepening are not just two options. The real ideal direction is to allow Taiwanese companies to go global, while allowing the world’s best materials, equipment, talents and capital to continue to enter Taiwan. When the global semiconductor supply chain must synchronize investment around Taiwan's technological progress, Taiwan must defend not just a sacred mountain to protect the country, but an entire mountain of national protection that is difficult to copy and replace.
(The author is a freelance reviewer)
