Economic Minister Kung Ming-hsin (龔明鑫) this Tuesday credited the leading American semiconductor company Micron Technology’s decision to expand investment in Taiwan with the government’s high administrative efficiency. He said this helps companies quickly realize the benefits of their investments.

Kung said the demand for High Bandwidth Memory (HBM) is growing alongside the rapid development of AI, and that technology companies consider government administrative efficiency and mass production speed alongside operating costs.

TSMC has reported that its electricity costs in Taiwan are higher than at its Kumamoto plant in Japan, Kung said, but overall operational efficiency and supply chain collaboration speed are more important than electricity costs.

Kung said, “For TSMC and other companies, cost isn’t their biggest concern right now; efficiency is. Administrative efficiency helps them produce as quickly as possible to meet market demand, which is their most important task.”

The economic minister explained that when the government helps companies accelerate factory construction and production processes, they can meet market demand more quickly, giving them a competitive advantage.

Responding to questions regarding accusations that “Taiwan steals American chips,” Kung said Taiwanese products have gained an advantage in the global market not through unfair means, but through excellent yield rates and technology. Semiconductors and other technology industries, he said, are the result of long-term investment. In the international market, semiconductors fall under the Information Technology Agreement framework, where countries compete in a relatively fair environment, Kung added.