◆… In the lead-up to the inauguration of Donald Trump, the U.S. president-elect who criticized Taiwan for “taking away” the U.S. semiconductor industry, TSMC, Taiwan’s largest semiconductor company, expressed confidence that government support for its investments in the U.S. would continue.
Ahead of Donald Trump’s inauguration as the U.S. president-elect, TSMC, Taiwan’s largest semiconductor company, stated that government support for its U.S. investments would continue.
Previously, Trump had criticized Taiwan for “taking away” the U.S. semiconductor industry. However, Wendell Huang, TSMC’s Chief Financial Officer (CFO), assured in an interview with CNBC on the 19th (local time) that “support funds will gradually flow in according to the construction and production stages during the Trump administration.”
Huang CFO further stated that “in fact, we have already received the first government support fund in the fourth quarter,” revealing that TSMC received $1.5 billion (about 2.2 trillion KRW).
Under the Biden administration’s semiconductor law (CHIPS and Science Act), TSMC secured a promise of $6.6 billion (about 9.6 trillion KRW) to build three cutting-edge semiconductor factories in Arizona.
TSMC first announced its Arizona investment plan in May 2020 and plans to invest a total of $65 billion (about 94 trillion KRW) in the region. The first semiconductor factory in Arizona began producing advanced semiconductors in the last quarter, and the second plant is under construction, aiming to be operational by 2028.
The Biden administration has been pushing a semiconductor supply chain investment plan worth $53 billion (about 77 trillion KRW) following the passage of the semiconductor law in August 2022.
While Trump is also expected to prioritize competition with China and revitalization of domestic manufacturing in his second administration, there is a possibility of the Republican-led House re-evaluating the semiconductor law. During his presidential campaign, he criticized the budget size of the semiconductor law and argued that imposing tariffs would be a more effective strategy for onshoring semiconductor production.
However, CNBC predicted that since the law enjoys bipartisan support in Congress, the Trump administration is likely to maintain most of it.
Meanwhile, TSMC recorded its highest-ever quarterly performance due to increased demand for AI semiconductors. TSMC Chairman Mark Liu emphasized, “We maintain a long-standing cooperative relationship with not only the U.S federal government but also state and local governments,” adding that “we continue to have frank and smooth communication not only with the current administration but also with the next administration.”