Fears that TSMC is moving Taiwan's chip industry to America look overblown, and that is reassuring news for Taiwan's economy and workers.

• TSMC has now promised $265 billion of US investment, including another $100 billion announced at its second-quarter earnings call.
• Taiwan is building far more than it sends abroad — of 18 plants under construction, 10 advanced chip plants are at home versus 2 overseas.
• Booming AI demand is the reason: the pie got bigger, so building in the US did not mean building less in Taiwan.
• The US spending also covers most of Taiwan's $250 billion investment pledge under its trade deal with Washington, easing pressure in those talks.
• No deadline is attached to the new $100 billion, so TSMC can slow or speed the build depending on demand and orders.

Outlook: As long as AI demand holds up, Taiwan should keep its position as the main base for advanced chipmaking and packaging.