 "TSMC to continue US investment plan after Trump’s election despite his stance against Chips act")
Taiwan Semiconductor Manufacturing Company (TSMC) has confirmed that it will continue its investment plans in the United States despite the recent election of Donald Trump. Responding to speculation about potential changes, TSMC clarified that its US strategy is unchanged, though the company did not delve into specifics.
TSMC, the world’s top contract chipmaker and a major supplier for giants like Apple and NVIDIA, has been pouring a hefty $65 billion into building new factories in Arizona. The ambitious investment is part of efforts to strengthen semiconductor manufacturing on US soil, a hot topic throughout Trump’s campaign trail, where he accused Taiwan of undercutting American chip businesses.
Meanwhile, TSMC and fellow chipmakers GlobalFoundries and an undisclosed third company are on the verge of securing final Chips and Science Act awards from the Biden administration.
According to sources familiar with the matter, the US Commerce Department recently informed Congress that these firms are close to receiving substantial financial awards, as required under the Chips Act. By law, the department must give Congress a 15-day heads-up before sealing any deal worth over $10 million.
The Chips and Science Act, passed in 2022, is designed to coax chipmakers into ramping up US-based production. It promises a hefty $37 billion in preliminary agreements to lure companies out of Asia. So far, only one award has been finalised: Polar Semiconductor’s $123 million to revamp its chip fabrication plant in Minnesota.
TSMC’s US arm has already bagged a preliminary $6.6 billion subsidy for its advanced semiconductor plant in Phoenix. Similarly, GlobalFoundries has secured $1.5 billion for expanding operations in Malta, New York, and Burlington, Vermont. Both chipmakers, however, have stayed tight-lipped about the timeline and details of these awards.
Impact Shorts
More ShortsThe US Commerce Department also kept things vague, insisting that congressional notification is a standard procedure and doesn’t necessarily mean terms are finalised.
Trump, known for his outspoken views, criticised the Chips Act on a podcast with Joe Rogan. He called it a misguided giveaway to wealthy corporations and argued tariffs would have been a better way to encourage chip production in the US.
His scepticism has even sparked debate among Republicans about repealing the Act, with House Speaker Mike Johnson initially suggesting it might be on the table — though he later backtracked.
Despite the political noise, TSMC’s stock hasn’t flinched. The company’s shares have performed well this year, fuelled by sky-high demand for artificial intelligence technology. On Thursday, TSMC’s American Depositary Receipts closed up 4.1 per cent, bolstered by NVIDIA’s milestone achievement of surpassing a $3.6 trillion market value.
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