TSMC "Support for the Semiconductor Act Will Continue Even Under the Trump Administration"

"Received $1.5 Billion in Q4...
First Plant Begins Production"

Wendell Huang, Chief Financial Officer (CFO) of Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, stated on the 19th (local time) that funding under the CHIPS and Science Act (CSA) is expected to continue even under the Donald Trump administration.

In an interview with CNBC on the same day, Huang said, "We have already received the first government subsidy of $1.5 billion (approximately 2.1857 trillion KRW) in the fourth quarter," and as the manufacturing plant passes milestones in construction and production, government funding is expected to continue under the Trump administration.

Huang mentioned that due to some production delays, the Arizona Phoenix 1 plant began full-scale production of advanced chips starting in the fourth quarter of last year. TSMC produces 4nm (1nm = one billionth of a meter) chips here, supplying major U.S. big tech customers such as Nvidia and Apple. He added that the construction of two additional plants in Arizona is proceeding as planned, with the second plant expected to be operational by 2028.

The Joe Biden administration signed the CSA in 2022 to revitalize the domestic semiconductor industry and decided to provide subsidies, including $6.6 billion (approximately 9.6169 trillion KRW) to TSMC. Having started investing in Arizona since 2020, TSMC announced in April last year that it would expand its U.S. investment to $65 billion (about 95 trillion KRW) and increase the number of semiconductor plants to three. Of this investment, $53 billion (about 77 trillion KRW) was added after the CSA took effect under the Biden administration.

Although then-President-elect Trump also prioritized competition with China and reshoring manufacturing to the U.S., he was negative about the Biden administration’s CSA. During his campaign, Trump publicly criticized the CSA, arguing that tariffs were a more effective strategy than subsidies. He also accused Taiwan of stealing the U.S. semiconductor business.

However, CNBC reported that most industry experts expect Trump to maintain the CSA as it has bipartisan support. After the earnings announcement on the 16th, TSMC Chairman Wei Zhejia stated that the company maintains a good relationship with the U.S. government.

Meanwhile, TSMC plans to skip the inauguration ceremony of President-elect Trump on the 20th. Chairman Wei said the company wants to stay low-profile and therefore will not attend the inauguration. TSMC also canceled the completion ceremony for the Phoenix 1 plant, which was scheduled for last month.

This content was produced with the assistance of AI translation services.