TSMC to proceed US funding plan after Trump’s election regardless of his stance in opposition to Chips act

Taiwan Semiconductor Manufacturing Company (TSMC) has confirmed that it’s going to proceed its funding plans within the United States regardless of the current election of Donald Trump. Responding to hypothesis about potential modifications, TSMC clarified that its US technique is unchanged, although the corporate didn’t delve into specifics.

TSMC, the world’s prime contract chipmaker and a significant provider for giants like Apple and NVIDIA, has been pouring a hefty $65 billion into constructing new factories in Arizona. The formidable funding is a part of efforts to strengthen semiconductor manufacturing on US soil, a sizzling subject all through Trump’s marketing campaign path, the place he accused Taiwan of undercutting American chip companies.

Meanwhile, TSMC and fellow chipmakers GlobalFoundries and an undisclosed third firm are on the verge of securing last Chips and Science Act awards from the Biden administration.

According to sources conversant in the matter, the US Commerce Department just lately knowledgeable Congress that these corporations are near receiving substantial monetary awards, as required underneath the Chips Act. By legislation, the division should give Congress a 15-day heads-up earlier than sealing any deal price over $10 million.

The Chips and Science Act, handed in 2022, is designed to coax chipmakers into ramping up US-based manufacturing. It guarantees a hefty $37 billion in preliminary agreements to lure firms out of Asia. So far, just 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 superior semiconductor plant in Phoenix. Similarly, GlobalFoundries has secured $1.5 billion for increasing operations in Malta, New York, and Burlington, Vermont. Both chipmakers, nonetheless, have stayed tight-lipped in regards to the timeline and particulars of those awards.

The US Commerce Department additionally stored issues obscure, insisting that congressional notification is a typical process and doesn’t essentially imply phrases are finalised.

Trump, recognized for his outspoken views, criticised the Chips Act on a podcast with Joe Rogan. He referred to as it a misguided giveaway to rich firms and argued tariffs would have been a greater strategy to encourage chip manufacturing within the US.

His scepticism has even sparked debate amongst Republicans about repealing the Act, with House Speaker Mike Johnson initially suggesting it may be on the desk — although he later backtracked.

Despite the political noise, TSMC’s inventory hasn’t flinched. The firm’s shares have carried out effectively this 12 months, fuelled by sky-high demand for synthetic intelligence expertise. 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 worth.