It was, from the beginning, a project of the Taiwanese state, and without significant public influence there is no way it would have become what it is.
Fun fact in this context: (Dutch) Philips was a major initial investor in TSMC (both in money and IP):
Only Philips was willing to sign a joint venture contract with Taiwan to put up $58 million, transfer its production technology, and license intellectual property in exchange for a 27.6 percent stake in TSMC.