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TSMC US investment: Fear and resignation after ‘world’s most powerful company’ pays Trump $100 billion

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Hong Kong/Taipei
CNN
 — 

It was a surprise ceremony at the White House presided over by President Donald Trump to unveil a $100 billion investment from what he called the world’s most powerful company, Taiwan Semiconductor Manufacturing Company (TSMC).

But nearly 8,000 miles away, the mood was far from celebratory. Instead, the shock announcement last week has reignited fears in Taiwan about losing its crown jewel, its world-beating semiconductor industry, to the US due to political pressure.

The island democracy’s former President Ma Ying-jeou wasted no time in accusing the ruling Democratic Progressive Party (DPP) of “selling TSMC” to Trump as a “protection fee.”

“This is a major national security crisis,” Ma, a member of the opposition Kuomintang (KMT), wrote on his Facebook page on March 4, shortly after the White House signing ceremony. It will “’have a significant negative impact on people’s confidence, cross-strait relations and Taiwan’s future geopolitical position.”

To reassure the public, Taiwan President Lai Ching-te appeared alongside TSMC CEO CC Wei last week at Taipei’s presidential office, saying the company’s US investment would not undermine its commitment to and planned expansion in its home base.

TSMC produces more than 90% of the world’s advanced microchips, which power everything from smartphones and artificial intelligence to weapons. That’s why many in Taiwan believe that global dependence on its semiconductors serves as a “silicon shield,” a deterrent against a potential Chinese invasion.

China’s ruling Communist Party claims Taiwan as part of its territory despite having never controlled it and has vowed to take control of the self-governing island, by force if necessary. Beijing has in recent years escalated its military activities around Taiwan, regularly flying fighter jets and conducting exercises in waters near the island.

A screen in Beijing shows news footage of military drills conducted by the Chinese People's Liberation Army around Taiwan on October 14, 2024.

Taiwan relies on US military and political support. Under the Taiwan Relations Act, the US is legally obligated to provide Taiwan with the means to defend itself against a possible attack by China.

But Trump’s recent rhetoric has cast uncertainty over the future of US-Taiwan relations. He has repeatedly accused Taiwan of “stealing” the US semiconductor industry, a claim that is widely disputed, while saying outright that Taiwan should pay the US for “protection.”

For many on the self-governing island, the phrase “Ukraine today, Taiwan tomorrow” has increasingly resonated in recent weeks as they watch Trump upend longstanding US policy by playing up Kremlin rhetoric and warming to Moscow, while alienating traditional European allies and Kyiv. Taiwanese see parallels between their democracy and Ukraine, with both facing existential threats from aggressive, expansionist neighbors.

Washington earlier this month abruptly suspended military aid to Ukraine following a heated exchange between Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelensky at the White House, just hours after the cheerful TSMC ceremony. It reinstated aid this week after Ukraine accepted a 30-day US-proposed ceasefire. The White House has also pressed Zelensky to sign a deal giving the US access to Kyiv’s untapped mineral riches.

Tammy Chao, a retiree, expressed deep concern to CNN about Taiwan’s security after TSMC’s announcement, likening Trump’s approach to his handling of Ukraine. She described him as a “dealer” who might eventually treat Taiwan as a bargaining chip.

“Taiwan, pretty soon just like [what] he said to Zelensky, ‘you have no cards to play,’ and Taiwan is not gonna have cards to play,” she said. “TSMC was the best card.”

But others appear less concerned. Fred Lin, a finance industry professional, said he believed TSMC came to this decision prudently.

“Who doesn’t pay protection fees to the US? No doubt It is a form of protection fee, that we can understand, but that’s the reality of international politics,” he said.

TSMC headquarters in Hsinchu, Taiwan, in 2024

Trump administration officials, however, have also said they need to dial down involvement in European security to focus on Asia – and the threat from China. Prior to his election, Vance was explicit in his concerns that US support for Ukraine could hinder its ability to aid Taiwan in the event of a Chinese attack.

Researchers say there are limits to comparisons between Ukraine and Taiwan’s security circumstances and believe the island’s security is influenced by multiple factors beyond its semiconductor industry, including China’s broader geopolitical ambition and Taiwan’s strategic location.

Whether China takes military action against Taiwan is ultimately driven by its core interests, which are not solely dependent on the island’s role in global chip production, said Min-yen Chiang, a nonresident fellow at the Research Institute for Democracy, Society, and Emerging Technology, a government-funded think tank in Taipei.

He referenced the time in 1950 when the US sent its Seventh Fleet to the Taiwan Strait early on during the Korean War to deter China from invading Taiwan. The strategic move by then-President Harry Truman neutralized the Taiwan Strait and ensured the Korean War did not trigger a wider conflict, maintaining stability in the Asia-Pacific region.

“Taiwan then had no semiconductor industry at all,” he said.

Last week, President Lai said Taipei did not “face any pressure from Washington” in doing the TSMC deal, which the company said was the biggest such investment in the US ever made by a non-American firm.

Standing next to him, Wei attributed the increased investment to “strong demand” from American customers such as Apple, Nvidia, AMD, Qualcomm and Broadcom that wanted to reduce potential supply chain risks by having chips made locally.

TSMC was awarded $6.5 billion in grants for its first three plants in Arizona under the bipartisan Chips Act, spearheaded by the Biden administration, which allocated $39 billion in federal funding to boost domestic semiconductor manufacturing.

“We are the best wherever we build our fabs,” Wei added, referring to semiconductor fabrication plants.

Along with the additional three manufacturing facilities, the new investment also promised two chip packaging plants and a research and development center to improve the production process technology.

Wei clarified that the development of the cutting-edge next generation chipmaking technology would remain in Taiwan and would still be 10 times bigger than the US facilities.

Semiconductor analysts applauded the company for making an “agile” decision.

TF International Securities analyst Ming-Chi Kuo praised TSMC in an online analysis, calling it the “most successful non-US company in negotiations with the Trump administration.”

“Though the $100 billion investment seems massive, the lack of details provides the flexibility for spending based on future conditions, softening the impact on profitability,” Kuo wrote.

TSMC’s investment has mostly alleviated Trump’s concerns, according to Eric Chen, an analyst at Digitimes Research, a market research firm. “But of course, we have no way of knowing when Trump might change his stance — he’s notorious for making sudden U-turns,” he said.

An electronic wafer is displayed at the TSMC Museum of Innovation in Hsinchu, Taiwan, in 2024.

He also added that TSMC was “not afraid” of Trump potentially scrapping the subsidies from the Chips Act, stressing that the company’s decision to invest in the US was driven by customer needs.

TSMC’s $100 billion investment marks the latest in a wave of businesses committing massive sums to the US. But it stands out as one of the first major foreign firms to do so, and Trump claims more such investments are on the way.

In contrast to his predecessor Biden’s approach of incentivizing domestic investment through subsidies, Trump prefers to weaponize tariffs. So far, it has proven effective.

Trump has previously threatened to impose 25% tariffs on semiconductors, along with automobiles and pharmaceuticals as early as next month. At the announcement of TSMC’s investment, Commerce Secretary Howard Lutnick said the company chose to expand in the US due to the threat of tariffs, and were not given additional grants.

In late February, Apple pledged $500 billion to expand facilities, manufacturing and projects across the US over the next four years. Oracle, OpenAI and SoftBank announced in January that they would invest $500 billion to create a new company that would build artificial intelligence infrastructure in the US.

With TSMC’s new investment in the US, Trump is expected to turn up the heat on other major companies, said Chang-Tai Hsieh, an economist at the University of Chicago’s Booth School of Business.

He said it puts added pressure on Samsung and Intel, the two other major producers of computing and AI chips in the world.

South Korea’s SK Hynix, another key player in memory chips along with Samsung, are also expected to feel the squeeze. Samsung has previously pledged to invest $37 billion in Texas, while SK Hynix announced plans to build a $3.87 billion chip packaging plant in Indiana last year. Samsung and SK Hynix declined to comment.

Hsieh said it is obvious that companies like TSMC and others will have to “do whatever they can to make Trump happy.” But he also warned of the risks associated with such concessions.

“Once you agree to blackmail, then there’s no end of it,” he said.



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UK arson attack trial reveals how Russia-linked operatives recruited ‘gig’ workers for terrorism

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London
CNN
 — 

Dylan Earl said he needed a “fresh start” in life. Unsatisfied by his prospects in his dreary English town, he decided to orchestrate a terrorist attack in London on behalf of a Russian mercenary group.

If he’d had things his way, the 20-year-old, small-time drug dealer would have moved to Russia to join its military. He’d heard that he could make good money fighting for what he saw as a just cause but feared his lack of spoken Russian would hold him back.

As it happened, Earl was able to join the war from the comfort of his home in England’s Midlands. All it took was a simple “Hi” to an anonymous Telegram account called “Privet Bot” that was inviting Europeans to join the “resistance” against Ukraine’s allies.

Just five days later, Earl arranged for a group of men to set fire to a warehouse in east London, choosing the target because of its links to Ukraine. The next month, Earl was arrested and charged with aggravated arson and an offense under the UK’s new National Security Act, to which he pleaded guilty. A second suspect, Jake Reeves, would plead guilty to aggravated arson and another National Security Act charge.

More than a year on, six others stood trial between May and July at London’s Old Bailey in relation to the attack.

On Tuesday, three were convicted by the jury of aggravated arson, while a fourth – the man who prosecutors said drove them to the site – was acquitted of that charge, which he denied.

Of the two men accused of failing to inform the police of a potential terror attack, one was acquitted on two counts and the other found guilty on one count and cleared of a second.

CNN heard courtroom testimony and the details in this piece are supported by statements and evidence presented in court.

British prosecutors said the “Privet Bot” account was associated with Wagner, a Russian mercenary group that has fought in Ukraine and maintained Moscow’s footprint in Africa. The account is now defunct, but correspondence revealed in the trial showed the length to which operatives went to recruit foot soldiers in the “shadow war” against the West.

Russia has not relied on well-trained agents in this campaign, but a network of low-level criminals: some sympathetic to Moscow’s cause, others simply wanting cash. Whereas espionage and sabotage used to take years to recruit and plan for, these operations now require just a few hours on Telegram and some cash. Analysts say this tactic is a dark spin on the modern “gig” economy: Hostile states use a young workforce that is temporary and flexible. The work is on-demand, just-in-time, no-strings-attached.

This has created headaches for those tasked with keeping Europe safe. Ken McCallum, the head of MI5, Britain’s domestic intelligence service, warned last year that Russia is on a “mission to generate mayhem on British and European streets.” Richard Moore, then head of MI6, the foreign intelligence agency, put it more bluntly: “Russian intelligence services have gone a bit feral.”

The trial of the six Britons revealed more about how this gig economy functions. CNN reviewed hundreds of exchanges on social media that prosecutors say were between the defendants, as well as their police interviews, to establish how Russia recruits for and wages its campaign against the West.

Some messages were deleted by the suspects, and investigators could not establish the identity of all the anonymous accounts involved. Where reproduced, some exchanges have been edited for clarity and length.

Earl made money dealing cocaine, with about £20,000 ($27,000) in cash and more in cryptocurrency to show for his exploits. But he wanted to make it big, and that meant getting out of England. One place in particular caught his eye.

It is not clear when Earl first became interested in Russia. On June 23, 2023, he joined a Telegram group called “AP Wagner Chat.” That same night, Yevgeny Prigozhin – then the head of Wagner – declared what would prove to be a short-lived mutiny against Russian President Vladimir Putin. Prigozhin died in a plane crash two months later.

Although Wagner still exists, its precise status is contested. Mark Galeotti, a leading Russia analyst with knowledge of the country’s security services, told CNN that the group has effectively been “rolled into the Russian state.”

Earl joined both smaller pro-Russian Telegram chats and larger groups such as “Grey Zone,” which boasted some 500,000 subscribers, and, according to British investigators, functioned as Wagner’s de facto mouthpiece. At least eight times between 2023 and 2024, the trial jury heard, the account promoted “Privet Bot,” encouraging people to join operations across Europe.

The account soon gave Earl his first target: a warehouse in Leyton, east London. The site was run by a Ukrainian man, whose businesses included delivering Starlink internet terminals to Ukraine – crucial technology for Kyiv’s war effort.

In case Earl was not sure what kind of work he was getting into, “Privet Bot” told him to watch the series “The Americans” – a Cold War drama in which Russian spies, embedded in Washington, DC, conduct dangerous missions for the Soviet Union.

Earl may have imagined himself as a Cold War-era spy, but much of that world has faded.

“During the Cold War, you had to cultivate an agent, then the agent would cultivate a network,” Gabrielius Landsbergis, Lithuania’s former foreign minister, told CNN. “Now you offer €50, €100, and you have a bunch of people that join in and do stuff for you… This is the way it works in the 21st century.”

Landsbergis said it was like drones replacing legacy equipment on the battlefields of Ukraine. “They’re just cheaper, and as efficient to (achieve) your stated goals.”

Russia’s shift to this tactic may initially have been out of necessity. With hundreds of its diplomats and agents expelled from European countries in the wake of Russia’s full-scale invasion of Ukraine, Moscow had to get creative in how it conducted its operations.

But the tactic proved fruitful: Attacks like that in Leyton are cheap to set up, often deniable, and below the threshold likely to trigger a response under NATO’s Article 5.

The Russian government has not responded to CNN’s request for comment regarding the allegations that a Wagner-linked bot was used to recruit operatives in the Leyton case.

Satellite imagery from Maxar Technologies shows the Cromwell Industrial Estate on Staffa Road, east London, where a warehouse was set on fire in March 2024.

Earl was committed to the mission; he just needed recruits. He found one in Reeves, a 23-year-old from Croydon, south London. It is not clear how Earl and Reeves first came into contact.

By day, Reeves worked as a cleaner at London’s Gatwick Airport. But in his ketamine-fueled nights, he became increasingly fascinated with his contact, Earl, whom he believed to be a Russian national, or at least a Russian speaker, with ties to the Kremlin.

While lacking Earl’s ideological fervor, Reeves could still help his cause by finding him willing foot soldiers. Prosecutors alleged he recruited Nii Mensah, now 23, another Croydon local who said he was “down for da cause,” as well as a large payday. Mensah appears to have recruited Jakeem Rose, also now 23, who lived near Mensah. Now they just needed a driver.

Paul English took a laxative on the evening of March 20, 2024, to prepare for his bowel cancer screening the next morning. Planning for a quiet night, the 61-year-old would instead find himself driving “cross-legged” across London.

His neighbor’s son, Ugnius Asmena, needed a favor. He and his mates needed a lift around the city. Might English be able to help out?

As English recalled in his police interview, Asmena’s offer was simple: £500 for a night’s work – half up front, the rest later. All he had to do was take him to Croydon, pick up a couple of others, then head north across the River Thames. English agreed, because he was “skint,” or broke. Soon after, he was driving towards Leyton with Asmena in the front, and two others – Mensah and Rose – in the back, prosecutors said.

English said he did as he was told: He drove to Leyton, filling a jerry can with gasoline en route, and waited in the car with Asmena, while Mensah and Rose got out to “do their thing.” Minutes later, the pair jumped over the fence and back into the car, leaving English to make their getaway.

A still from security camera footage showed Mensah and Rose carrying a jerry can at the industrial estate.

Just before midnight, the London Fire Brigade was called to the Cromwell Industrial Estate. The blaze caused more than £1 million in damage, the court heard.

Later that night, Mensah Googled “Leyton fire.”

“Bro lol,” he said to Earl on Telegram. “It’s on the news.”

When the jury returned Tuesday after several days of deliberation, Asmena, Rose and Mensah were each found guilty of aggravated arson, charges they had denied. English was acquitted of the same charge, which he had also denied.

From left to right: Nii Mensah, Jakeem Rose and Ugnius Asmena.

Burning a warehouse will not on its own tip the balance of the war in Russia’s favor. But cumulatively, such attacks can unsettle Ukraine’s Western backers.

According to a database of alleged Russian “shadow” attacks compiled by the US-based Center for Strategic and International Studies (CSIS) think-tank, the number carried out quadrupled between 2022 and 2023, then nearly tripled between 2023 and 2024.

These alleged attacks have included blazes at a shopping mall in Poland and an Ikea store in Lithuania, cyberattacks on Czech railways, and the vandalism of Jewish buildings in France. Russia has denied allegations of any involvement.

Recalling his time in office in Lithuania, Landsbergis said responding to such attacks felt like playing whack-a-mole: “You catch one and Russia easily replaces them with several others hired through Telegram.”

Galeotti, the Russia analyst, said this alleged campaign has two main goals: To show Europe that there are costs to backing Ukraine, and – even if the operations fail – to cultivate a “general sense of chaos” in Europe.

“Everything that goes wrong, someone sees the ‘dread hand’ of Putin behind it,” Galeotti said. “If nothing else, it makes the Russians seem much more powerful that they really are.”

A drone view of the Marywilska 44 shopping centre burning during a massive fire in Warsaw, Poland, on May 12, 2024.

Back in Croydon, Mensah wanted payment. But there was a holdup: Earl said he wouldn’t be paid until the Russians could judge the extent of the damage.

But “Privet Bot” wasn’t happy. It told Earl that he had jumped the gun. “We could have burned the warehouses much better and more if we had coordinated our actions,” it told him. As such, Earl wouldn’t receive the full fee.

Earl’s accomplices grew bitter – none more so than Mensah. Earl couldn’t stump up the cash for the first job, but felt he had something better: an even more lucrative contract for another arson attack – this time in London’s swish Mayfair district.

The targets were a restaurant and wine shop owned by Yevgeny Chichvarkin, a Russian businessman who had criticized the war in Ukraine. Earl went back to his UK contacts.

Reeves was happy to help, messages showed. He couldn’t be “broke forever,” he told his school friend, Dmitrijus Paulauskas, a Russian-speaking Lithuanian who moved to Britain when he was young. Although Paulauskas was not involved in planning the attack, in his messages he said he was “gassed” (excited) that Russia had “integrated into the UK underworld.”

Paulaskas was cleared by the Old Bailey jury on two counts of failing to disclose information about terrorist acts. Another defendant, Ashton Evans, 20, faced the same charges and was found guilty on one count and acquitted on the second.

While preparing for the attack in central London, Earl began to have grander ambitions. “Privet Bot” was encouraging: “You are wise and clever despite being young! We have a lot of glorious jobs ahead.”

But to recruit more people, Earl needed faster payments from Russia. Most of Earl’s messages to the bot were not recovered in the investigation, but one late-night, Google-Translated outburst had not been deleted, showing Earl pleading with his superiors to equip him to become “the best spy you have ever seen.”

The next day, Earl was arrested by British police. He pleaded guilty to aggravated arson and to an offense under the National Security Act. Reeves was arrested nine days later, and pleaded guilty to similar charges. Sentencing for Reeves and Earl – and the four others convicted – will take place at a later date, the UK’s Crown Prosecution Service said.

Historically, Moscow has gone to great lengths to reward and retrieve its spies. But these “gig economy” recruits can’t expect the same.

To Russia, they are disposable; to their home countries, they are traitors. In her summing up, the judge put it starkly: “Our parents and grandparents would have had a simple term for what Dylan Earl and Jake Reeves did: treason.”

Although sabotage is an old crime, Europe has struggled to combat the new ways of committing it. Landsbergis said Europe’s disjointed response meant Russia could act with impunity. Now, Europe should “go after the archer, not the arrows,” he said.

The tempo of Russia’s alleged attacks has, however, slowed in recent months, Galeotti noted, perhaps due to the success of European authorities in thwarting them and bringing the perpetrators to justice. Or, he said, Moscow may be taking stock of what it learned from 18 months of “entrepreneurial” thinking.

“I would love to think that it was just something they tried and then abandoned. But I have a feeling we’re going to see them return to it, having internalized the lessons of the first ‘test’ operations,” he said.



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Wildfire threatens Marseille, shuts down airport in southern France

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Reuters
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A fast-moving wildfire reached the outskirts of Marseille, France’s second-largest city, on Tuesday, leading its airport to be shut down, with residents told to stay indoors and shut all openings to be safe from the smoke.

Hundreds of firefighters battled a fast-moving wildfire that reached the outskirts of the southern French city of Marseille on Tuesday, forcing people to stay indoors and the nearby airport to close.

Aided by firefighting helicopters and aircraft, the firefighters had the blaze under control by evening, officials said, but a forecast of more strong winds meant it might yet advance further towards France’s second most populous city.

The fire, fanned by winds of up to 70 kph (43 mph), could be smelt in the center of Marseille as thick clouds of smoke hovered over the city on the Mediterranean coast.

“It’s very striking – apocalyptic even,” said Monique Baillard, a resident of Les Pennes-Mirabeau, the town north of Marseille where officials said the fire started on a highway.

The fire has burnt through 700 hectares (1,730 acres) and was considered to be under control even though it is still burning, regional prefect Georges-Francois Leclerc said.

About 20 buildings have been at least partly hit by the fire but no fatalities have been reported and hundreds of homes have been saved by firefighters, he said. Over 700 firefighters were battling the blaze, aided by firefighting helicopters and aircraft.

Wildfires, which have become more destructive in Mediterranean countries in recent years and attributed to climate change, were also raging in northeastern Spain, where large parts of the country were on high alert for fires.

There were also fires last week on the Greek island of Crete and in Athens, as much of Europe sweltered in an early summer heatwave.

As the fire was spreading, residents of Marseille received official alerts on their phones telling them to stay at home and put damp cloths on any openings.

“As we speak, it’s a battle,” Payan said, likening tackling the wildfire to “guerrilla warfare.”

“We’re waiting to see what happens overnight, because that’s critical too. Everything is strategic: wind speed, humidity, nightfall — every factor matters. Once again, it’s extremely complex, and the work is incredibly difficult.”

People look on near the Plage des Corbieres, in Marseille, southern France on July 8, 2025, as a smoke from a wildfire rages in the background.

Two residents of the 16th borough, in the north of Marseille, near where the fire started, described how scared they had been.

“It was dangerous, a lot of very dark smoke, we were really afraid. Police and firefighters did a great job,” said one resident, who did not give his name and said things now looked under control in his neighborhood.

Residents were told not to evacuate unless ordered so that roads could be left clear for rescue services.

“At this stage, populations must remain confined,” the Provence-Alpes-Côte d’Azur prefecture posted on X. “Close shutters, doors, keep your property clear for emergency services, and do not travel on the roads.”

Anne, a 51-year-old woman who works in Marseille and lives on the outskirts, said by phone: “The sky is grey with ash, and the smell of fire is very strong in the center of Marseille.”

In the coastal neighborhood of l’Estaque, restaurant owner Simon Epenmbia said he was huddling in the restaurant with his family and neighbors.

“We are relatively close to the sea, where we feel safer for now and there is less smoke,” he said. “I also saw other people who came here towards the beach and are sheltering in their cars.”

A spokesperson for Marseille airport, France’s fourth-busiest, said planes had not been taking off or landing since around midday and some flights had been diverted to Nice, Nimes and other regional airports. It was unclear when it would reopen.

Many train lines heading to and from Marseille were suspended. Some roads and highways were also shut.

A wildfire that started near Narbonne, in southwestern France, was also still active on Monday. Some 2,000 hectares have burnt there, the local prefecture said.



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Diogo Jota was behind the wheel and likely speeding when car crashed, preliminary police investigation says

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CNN
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Liverpool forward Diogo Jota was driving and likely speeding when his car crashed in Spain on Thursday, killing him and his younger brother, according to a preliminary police investigation.

Jota and his brother, André Silva, died after their car – reported by Spanish media to be a Lamborghini – came off the road following a burst tire and subsequently went up in flames in the early hours of Thursday morning.

A spokesperson for Spain’s Guardia Civil told CNN Sports that their preliminary investigation indicates Jota was behind the wheel in the fatal crash and that speeding was likely a factor due to tire marks left on the highway.

Once the Guardia Civil has finalized its investigation later this week, it will be sent to a local judge before being released to the public.

The soccer world has been in mourning since news of Jota’s death broke, with former teammates, managers and fans from around the world sending tributes to a beloved figure in Liverpool and beyond.

“It does not make sense,” Cristiano Ronaldo wrote on social media. “We were only just together in the national team, you had only just got married.

“I send my condolences and all the strength in the world to your family, to your wife and to your children. I know that you will always be with them. Rest in peace, Diogo and André. We will all miss you.”

Jota married his long-term partner, Rute Cardoso, with whom he has three children, less than two weeks before the crash.

The funeral for the two players took place in their hometown of Gondomar, Portugal on Saturday.



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