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Taiwan Officials Downplay Engineer Exodus to TSMC’s Arizona Fabs

Company maintains 70,000 workers remain on island despite massive expansion
Taiwan
t 2330.TW Blue Chip 150 OM 60 Semicon 75 Tech 350
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Taiwan lawmakers voiced concerns about potential brain drain as Taiwan Semiconductor Manufacturing Co. expands its Arizona operations with a NT$4.97 trillion ($165 billion) investment across six fabrication plants.

During a Legislative Yuan committee session reviewing foreign talent legislation, lawmaker Wan Meiling questioned whether TSMC would deploy a cumulative 3,000 engineers to the US, building on the 500 professionals initially sent to establish the first facility. National Development Council Chairman Liu Jingqing dismissed such projections, arguing subsequent fabs wouldn’t require proportional staffing increases due to knowledge transfer mechanisms.

Liu’s assurances appear optimistic given current realities. About half of TSMC Arizona’s 2,200 employees are from Taiwan, already doubling initial deployment estimates. The company’s Arizona expansion has faced cultural clashes, missed deadlines, and workplace disputes that could necessitate additional Taiwanese oversight.

Economic ministry officials maintained that TSMC’s domestic workforce of 70,000 employees demonstrates the company’s continued Taiwan focus. However, TSMC’s plans call for creating 12,000 jobs across six fabs, two packaging facilities and a research center, potentially requiring substantial staffing transitions.

The debate reflects broader tensions over Taiwan’s technology sector. While the island seeks to attract foreign professionals, it has long struggled with talent exodus to China, where compensation packages can exceed Taiwan salaries by three to five times.

Lawmakers questioned whether engineers on expiring three-year Arizona contracts would return to Taiwan, highlighting uncertainty around the company’s long-term staffing strategy. TSMC’s global expansion, while strategically necessary, creates complex workforce allocation challenges that could impact Taiwan’s semiconductor dominance.

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