There had been speculation that the company might locate it outside Taiwan – perhaps in the USA.

TSMC says it  ‘recognises and is grateful for the government’s clear commitments to resolve any issues, including land, water, electricity and environmental protectioN.’

TSMC had indicated earlier that it was unhappy about the island’s electricity infrastructure.

TSMC has always said it prefers to build its fabs in a cluster to share technology and says that the decision to invest in Tainan is ‘to fully leverage the company’s existing cluster advantage and the benefit of a comprehensive supply chain. ‘