According to Economy Minister Wang Mei-hua, Taiwan’s TSMC (2330. TW) has not changed its investment plan for its new chip factory in Kaohsiung.
Wang told reporters outside parliament that TSMC’s global R&D and manufacturing hub remains in Taiwan. “TSMC still invests in Taiwan and Kaohsiung.”
Wang’s comments follow DigiTimes’ story, citing sources, that TSMC is limiting its expansion in Kaohsiung and other Taiwanese cities.
TSMC, a key Apple (AAPL.O) supplier, declined to comment, noting its quiet time before quarterly reports next Monday.
Last year, the chipmaker started building its Kaohsiung factory to generate mature 28-nanometer transistors.
TSMC announced the Kaohsiung expansion would incorporate sophisticated 7-nanometer chips in 2021. However, the firm eventually postponed the plan.
In January, TSMC, the world’s largest contract chipmaker, expected lower demand due to a slowing global economy and would reduce its capital spending to $32-$36 billion from $36.3 billion last year.
The company recently opened chip factories in the US and Japan.
TSMC’s shares fell 1% on Wednesday morning, trailing the market (.TWII).
