TSMC Declines Offers to Set Up Factories in India

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s top chip maker, has refused offers to build factories in India, Singapore, and Qatar. This was reported by Taiwan-based media outlet DigiTimes on Wednesday.

The report stated that TSMC still prefers Taiwan as its main base for production. It also said that TSMC built factories in the US, Japan, and Germany because of strong pressure from powerful countries. These nations also have strong supply chains for semiconductor production, which made the expansion possible.

TSMC Declines Offers to Set Up Factories in India

The report added that while some Middle Eastern countries want to build large AI infrastructure projects, TSMC might still consider factory plans in those regions in the future.

According to DigiTimes, TSMC has enough money to build factories in the Middle East. However, the main issue is that these countries do not have an established semiconductor industry.

In March, TSMC increased its investment in the United States. The amount went up from $100 billion to $165 billion. The company plans to build three chip factories, two packaging units, and a large research centre in Arizona. This is the biggest foreign investment in U.S. history.

Major tech companies like AMD, NVIDIA, and Apple are among the main clients of TSMC’s Arizona facilities.

The main reason behind this refusal is mainly because these countries lack a well-established semiconductor industry. According to reports, while TSMC has the financial ability to expand into these regions, the absence of a strong supply chain and supporting infrastructure poses a major challenge. The company continues to prefer Taiwan as its core production base due to its mature ecosystem. In contrast, its decision to set up factories in the US, Japan, and Germany was influenced by heavy political pressure and the strong semiconductor capabilities present in those countries.

See Also: MediaTek Announces 2nm Chip with TSMC Tape-Out Set for September 2025

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