Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has declined invitations to establish manufacturing units in India, Singapore, and Qatar, according to a report by Taiwan-based media outlet DigiTimes. The decision underscores the challenges nations face in attracting high-end semiconductor manufacturing without robust local ecosystems.
TSMC reportedly maintains that Taiwan remains its ideal production base, and its ongoing international expansions—to the United States, Japan, and Germany—are primarily the result of pressure from global powers coupled with the existing strength of these countries’ semiconductor supply chains.
The company’s reluctance to expand into India and other regions appears rooted in the absence of a mature semiconductor manufacturing infrastructure, despite financial viability and growing interest in AI infrastructure from Middle Eastern countries.
TSMC doubles down on US investments
In March, TSMC increased its U.S. investment from $100 billion to $165 billion, making it the largest single foreign direct investment in U.S. history. This expanded plan includes three fabrication plants, two advanced packaging units, and an R&D centre in Arizona. The Arizona facilities already support key TSMC clients including AMD, NVIDIA, and Apple.
These moves reflect TSMC’s strategy of aligning global capacity with established supply chain networks and customer proximity, especially in geopolitically aligned markets.
Also read: Chhattisgarh Gets First Semiconductor Plant
India advances in chip design with new 3nm centres
Meanwhile, India is progressing on the chip design front. Union Minister Ashwini Vaishnaw announced that the country’s first end-to-end 3-nanometer chip design centres will be set up in Noida and Bengaluru. These centres, operated by the Indian unit of Japanese chipmaker Renesas Electronics, represent a significant step forward in India’s ambition to build a competitive semiconductor ecosystem.
While India continues to attract interest from global electronics players, TSMC’s decision highlights the critical importance of a foundational supply chain and industrial base in attracting high-tech fabrication investments.
