At Computex 2024, Taiwanese officials highlighted TSMC's capacity to supply advanced AI chips and announced a new "AI Partnership Fund" earmarked for joint R&D with the United States, Japan and Europe. The move follows U.S. pressure for Taiwan to share more of its AI chip profits and to limit exports to China. TSMC reported Q2 revenue of $19.8 billion, up 12% YoY, driven by AI accelerator demand.

Taiwan's chip output accounts for over 60% of global advanced-node production, giving it outsized influence over the AI supply chain. By framing its semiconductor strength as a diplomatic asset, Taipei seeks to secure security guarantees and technology transfers while deflecting calls for forced profit sharing. This shifts the AI geopolitics from pure export controls to a quid‑pro‑quo model where chip access is traded for political support.

TSMC and allied chip designers win if the fund yields co‑development of next‑gen GPUs, while China loses leverage as Taiwan tightens export controls on AI chips. The United States and its allies gain assured supply and potential IP gains, whereas Taiwanese taxpayers may bear the cost if subsidies overshoot returns.

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