President-elect Donald Trump has accused Taiwan of “stealing” the U.S. chip industry, raising questions about the future of semiconductor investments. However, Taiwan Semiconductor Manufacturing Co. (TSMC) remains optimistic that U.S. government funding will continue for its $65 billion investment in three chip fabrication plants in Arizona.
Speaking to CNBC, TSMC CFO Wendell Huang confirmed that the company has already received $1.5 billion under the Biden administration’s CHIPS and Science Act. The funding is tied to milestones in the construction and production of the Arizona facilities, with the first plant starting advanced chip production in late 2024 and two others on track, including one set to begin operations in 2028.
“Our partnership with the U.S. government has been strong, and we expect that to continue,” Huang said.
TSMC’s Arizona investments, part of a broader U.S. strategy to counter China’s dominance in semiconductors, were bolstered by the CHIPS Act, which allocated $53 billion to strengthen the domestic semiconductor supply chain.
During his campaign, Trump criticized the CHIPS Act’s cost, favoring tariffs over subsidies to boost domestic chip production. Despite his rhetoric, industry experts anticipate the bipartisan-supported policy will largely remain intact under his administration.
TSMC reported record fourth-quarter profits, driven by strong demand for AI chips, with shares rising 1.36% on Friday. CEO and Chairman C.C. Wei emphasized the company’s “long-standing and good relationship” with U.S. leaders at all levels, assuring investors of continued cooperation with the incoming administration.
“We maintain open communication with the current and future U.S. government,” Wei said, while noting TSMC would not attend Trump’s inauguration to keep a low profile.
As Trump prepares to prioritize onshoring manufacturing and competition with China, TSMC’s progress in Arizona could serve as a key litmus test for the new administration’s stance on semiconductor policy.
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