Concerns are mounting in Taiwan about whether TSMC’s recent pledge to invest billions in Arizona under pressure from Donald Trump will undermine the island’s dominance in the global semiconductor industry.

Trump announced on Monday that Taiwan Semiconductor Manufacturing Company planned to invest at least US$100 billion over the next few years to build state-of-the-art semiconductor manufacturing facilities.

This investment will be allocated towards a research and development centre, two advanced packaging facilities, and three more semiconductor fabs in addition to the three already in operation or under construction in Arizona.

The additional funding brings TSMC’s total investment in the US state to US$165 billion, a move Trump claimed could help the chipmaker avoid tariffs.

The US president has repeatedly accused Taiwan of “stealing” from the US chip industry and has threatened to impose tariffs of up to 100 per cent on imported chips.

Max Lo, executive director of the Taiwan International Strategic Study Society, a Taipei-based think tank, said Trump had scored a significant victory with his aggressive tariff strategy, which has also seen him alternately threatening Canada and Mexico and then delaying the measures.