News Taiwan Approves Major Tax Breaks for High-Tech R&D, Manufacturing

Taiwan can spend as much as they want, that is not going to stop the US and Europe from wanting to get back the chip manufacturing marketshare that they lost to Taiwan and Korea.

Because this is a national security issue. When F-35 production gets into trouble because there are chip delays with TSMC, one has to ask what kind of crazy security risk it is to outsource everything to a tiny island on one of the most seismically active regions in the world.

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Because this is a national security issue. When F-35 production gets into trouble because there are chip delays with TSMC, one has to ask what kind of crazy security risk it is to outsource everything to a tiny island on one of the most seismically active regions in the world.

Agreed that it is a national security issue but I'd say the primary risk is less earthquake supply disruption and more than Emperor Xi has made it clear that they are on the Honk Kong path of bringing Taiwan to heel as they know no western country will go to war to keep them independent.
 
Taiwan needs these incentives to compete with China's ambition to take it all mainland.

Taiwan's TSMC has chip factories in mainland China. This idea that there's this division between Taiwan and mainland China when it comes to chips is something that Taiwan exaggerates to escape US sanctions on China. TSMC's Shanghai fabs in China are even physically located right next to to China's biggest chipmaker, SMIC, they often recruit from one another, the factories are a stonethrow away from each other.
 
Quoting the article: "When Morris Chang founded TSMC in 1987, he got $100 million from the Taiwanese government in exchange for a 49% stake. Other foundries that followed Chang's steps ...."

Huh? "other foundries..."? What's that about? Foundries make metal castings - this is about semi-conductors. I don't get it.
 
Quoting the article: "When Morris Chang founded TSMC in 1987, he got $100 million from the Taiwanese government in exchange for a 49% stake. Other foundries that followed Chang's steps ...."

Huh? "other foundries..."? What's that about? Foundries make metal castings - this is about semi-conductors. I don't get it.
Semiconductor fabs can also be referred to as foundries. For example:
https://www.nasdaq.com/articles/an-overview-of-the-top-5-semiconductor-foundry-companies-2021-10-01