Taiwan Economy Minister Kuo Jyh-huei said on Thursday that chipmaker TSMC would need government permission for any overseas joint ventures, but there are no restrictions on making the most advanced chips overseas other than for China.
U.S. media have said Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker and a major supplier to companies such as Apple and Nvidia, has been in talks for a stake in Intel.
Neither company has confirmed the talks, but U.S. President Donald Trump has criticized Taiwan for taking away American semiconductor business and says he wants the industry back in his country.
Speaking to reporters in Taipei, Kuo said that "no one can shake the foundations" of Taiwan's semiconductor industry.
"We have to have confidence in TSMC, and the government will fully support the 'sacred mountain protecting the country," he added, using an expression that refers both to the importance of the chip sector and TSMC to Taiwan's economy.
Kuo said the government would not interfere in TSMC's decisions.
"For TSMC to go into the world and have a joint venture in any location, it needs government permission," he added.
Large overseas investments need to be approved by Taiwan's economy ministry, and Taiwan does not allow its companies to produce the most advanced chips in China.
Kuo said there is no change to these rules, but permission must still be first obtained from the government for such production in countries other than China.
TSMC is already investing $65 billion in new factories in Arizona, United States. Taiwan's government has permitted the production of the most advanced 2-nanometer chips there, though not for a couple of years.
Taiwan, which has a large trade surplus with the U.S., could also be subject to the wide-ranging import tariffs Trump has threatened to impose to address trade imbalances.
Kuo said the ministry was collecting information for government negotiators to talk to the Trump administration on the tariffs issue to seek the best conditions for Taiwanese companies, but he declined to comment on the contents of the talks.
