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Taiwan President Lai Ching-te met with US chipmaker Micron's CEO Sanjay Mehrotra. Lai pointed to Micron's ventures in Taiwan as evidence that investment between Taiwan and the US is mutual, as he tries to garner support for the new trade deal. Lily LaMattina spoke to Marco Mezger of Neumonda Technology Group about what Micron's investments mean for Taiwan.
Transcript
00:00President Lai and Micron's CEO met at the presidential office. Lai said that Micron's investment in Taiwan is the best proof of U.S.-Taiwan cooperation. Why is Micron so important to Taiwan?
00:11Micron is today the largest foreign employer in Taiwan. So if you look at the workforce for Micron in Taiwan, I think it's probably around about 12,000 right now.
00:22And that's quite significant. This is growing. Some of their newest technology is here for advanced packaging for HBM. A lot of their team is here who's supporting for the AI supply chain.
00:38So I think in this regards, this is nothing which is driven by all the current geopolitical movement. This is really driven because of the technology infrastructure.
00:48And when TSMC is very strong on logic, they also need memory. And there is Micron probably the biggest one in Taiwan right now.
00:59The new U.S.-Taiwan trade deal significantly increases Taiwanese investment in the U.S., especially TSMC's.
01:05As the Taiwan government tries to garner support for the deal, it's using Micron to show that investment between the U.S. and Taiwan is mutual.
01:13Is Micron's investment in Taiwan comparable to TSMC's investment in the U.S.?
01:19I would not say because I think the investment from Micron is commercially driven and the investment from TSMC is because of policy driven.
01:28So I understand also that Taiwan is providing also some subsidy support to Micron.
01:33Micron is going because of the business. So it's pretty clear. It's because of the ecosystem you have in Taiwan.
01:39This is very important for a memory company to be here.
01:44You have also other memory companies with own fabs in Taiwan, which is Winbond, which is Nanya, and which is also Powerchips.
01:52And if you look, for example, for TSMC, TSMC is investing.
01:56I mean, the numbers are minimum 165 billion up to some people say to 300 billion if everything comes into place.
02:03So Micron probably at the moment invests, I would say, since the last couple of years and looking forward, probably one trillion NTDs or like 30 billion, 35 billion.
02:15So that's also like a completely different level.
02:18Are there any other U.S. companies significantly making investments in Taiwan?
02:22You have American companies like LAM Research, KLA, and they also did already significant investments here.
02:29But also, for example, NVIDIA, I mean, they do in Shilin, in Taipei City, where they will have a new company headquarter for the region.
02:39You have AMD, but also you have the hyperscalers who come here, right?
02:43You have Google, for example, here. You have Amazon here.
02:46And I'm telling you, it was a very, very smart move.
02:49You know, yes, Taiwan is like semiconductor hub and it's very important.
02:53And other companies and regions want to do this.
02:56But now becoming like an AI supply chain hub where you have different stacks.
03:02You have technology, you have design, you have manufacturing.
03:06You have, for example, companies like Wistron, Compal, who are basically building servers.
03:11So you have like a high value ecosystem for AI.
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