Taiwan Semiconductor Manufacturing Company (TSMC), one of the largest and most influential chipmakers in the world, has expressed confidence that the funding it receives under the CHIPS and Science Act will continue under the incoming administration of U.S. President-elect Donald Trump. Despite Donald Trump’s criticism of Taiwan’s chip industry, which he has accused of “stealing” U.S. business, TSMC’s Chief Financial Officer Wendell Huang believes that the company’s U.S. investments, particularly in Arizona, will remain supported under Donald Trump’s leadership.
Under the Biden administration, TSMC has already been promised $6.6 billion as part of the U.S. government’s push to bolster domestic chip manufacturing. This funding is aimed at supporting the construction of three state-of-the-art chip fabrication plants in Arizona, which are seen as key to the U.S. effort to reduce dependence on foreign semiconductor manufacturing and counter China’s growing technological influence.
Speaking in an exclusive interview with CNBC’s Emily Tan, Huang outlined that TSMC expects continued funding as the construction and production milestones of the Arizona fabrication plants are met. The first of these plants began producing advanced chips in the fourth quarter of the previous year, despite some delays in production. Huang confirmed that the company has already received the first tranche of government support, amounting to $1.5 billion.
While there has been some political debate regarding the future of the CHIPS Act under Donald Trump, Huang remains optimistic that the funding and support for TSMC’s projects will persist. During his presidential campaign, Donald Trump criticized the CHIPS Act and its cost, suggesting that tariffs would be a more effective tool to bring chip manufacturing back to the U.S. Donald Trump also made inflammatory remarks about Taiwan’s role in the U.S. chip industry. However, industry experts argue that despite Donald Trump’s criticisms, the bipartisan nature of the CHIPS Act, along with its strategic importance in strengthening the domestic semiconductor supply chain, will likely ensure that the policy remains largely unchanged.
In fact, TSMC’s commitment to the U.S. market and the Arizona projects is significant. The company’s total investment in these three facilities will eventually exceed $65 billion, with much of that sum committed after the Joe Biden administration passed the bipartisan CHIPS Act in 2022. The law allocated nearly $53 billion to support domestic semiconductor production, a key part of the U.S. effort to counter China’s technological ambitions. With such a major investment at stake, it is expected that TSMC’s relationship with the U.S. government will remain a priority, even as the leadership changes hands in Washington.
TSMC’s recent earnings report, which showed a record profit for the fourth quarter driven by strong demand for its artificial intelligence (AI) chips, further underscores the company’s importance in the global semiconductor landscape. The announcement led to a nearly 4% increase in TSMC’s stock price, with shares closing 1.36% higher the following day. In a call to investors, CEO and Chairman C.C. Wei highlighted the company’s strong and enduring relationship with the U.S. government, noting that TSMC has received significant support at the federal, state, and city levels.
“We have a very frank and open communication with the current government and with the future one also,” Wei assured investors during the earnings call. This statement underscored the company’s confidence in continued government backing, regardless of who occupies the White House. However, despite this positive outlook, Wei also clarified that TSMC would not be attending Donald Trump’s inauguration, choosing to maintain a low profile in the face of ongoing political tensions.
As TSMC moves forward with its ambitious U.S. expansion plans, the company’s success in securing ongoing funding and support for its projects is crucial for both its future and the broader semiconductor industry. The continuation of the CHIPS Act under the Donald Trump administration could help ensure that TSMC’s operations in Arizona, along with other domestic manufacturing efforts, continue to receive the necessary backing to succeed. The company’s ability to navigate the evolving political landscape while remaining focused on its strategic goals will be closely watched by investors, policymakers, and industry experts alike.
