Hall Chadwick Insights

TSMC’s Expansion in the U.S.: The Importance of Global Business Strategy and Cross-Border Tax Planning

Recently, TSMC announced an additional investment of $100 billion in the United States, once again highlighting the fierce competition in the global technology industry and the necessity for Taiwanese enterprises to expand their international footprint. As Minister of Economic Affairs Jyh-huei Kuo (J.W. Kuo) stated, corporate overseas investment decisions are primarily driven by market demand, local resources, and global strategic considerations. These decisions are not made overnight but are the result of thorough evaluation and meticulous planning to ensure long-term business success.
 
With globalization on the rise, an increasing number of Taiwanese companies are venturing abroad, establishing factories and investing in the U.S. However, operating across borders is not merely about market access and resource allocation—it also involves navigating local regulations, tax systems, and cultural differences, which can present significant challenges for businesses expanding into foreign markets.
 

Our firm is dedicated to “providing tailored solutions to meet the needs of our clients”, assisting Taiwanese businesses in establishing a solid presence in the U.S. and offering comprehensive cross-border tax planning. Take the case of setting up a manufacturing plant in Arizona—local investment policies and tax regulations differ significantly from those in Taiwan. Without proper planning, companies may face heavy tax burdens and compliance risks. In the first phase of plant construction, we successfully helped a client in the supply chain reduce their tax burden by nearly $2.5 million, easing their financial cash flow pressures and strengthening their competitive position in global markets.

 
Through our experience handling cross-border cases, we have realized that legal and cultural differences play a crucial role in shaping corporate decisions and execution. Viewing these challenges from a single-country perspective often leads to suboptimal solutions. Our expertise lies in understanding and integrating diverse regulatory and cultural frameworks, enabling us to find the most effective strategies for our clients while ensuring compliance and sustainable international growth.
 
TSMC’s investment decision is not just a reflection of corporate global expansion but an inevitable step for Taiwanese businesses to remain competitive in the international market. Moving forward, we will continue leveraging our professional expertise to support more enterprises in their overseas ventures, providing the most comprehensive tax and financial planning services to help Taiwanese businesses secure a strong foothold in the global market and embark on a broader future.