TSMC to proceed US funding plan after Trump’s election no matter his stance in opposition to Chips act

Taiwan Semiconductor Manufacturing Company (TSMC) has confirmed that it’s going to proceed its funding plans throughout the United States whatever the present election of Donald Trump. Responding to speculation about potential modifications, TSMC clarified that its US method is unchanged, though the company didn’t delve into specifics.

TSMC, the world’s prime contract chipmaker and a major supplier for giants like Apple and NVIDIA, has been pouring a hefty $65 billion into establishing new factories in Arizona. The formidable funding is part of efforts to strengthen semiconductor manufacturing on US soil, a scorching topic all by Trump’s advertising marketing campaign path, the place he accused Taiwan of undercutting American chip firms.

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

According to sources conversant within the matter, the US Commerce Department simply these days educated Congress that these companies are close to receiving substantial financial awards, as required beneath the Chips Act. By laws, the division ought to give Congress a 15-day heads-up sooner than sealing any deal worth over $10 million.

The Chips and Science Act, handed in 2022, is designed to coax chipmakers into ramping up US-based manufacturing. It ensures a hefty $37 billion in preliminary agreements to lure companies out of Asia. So far, only 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 growing operations in Malta, New York, and Burlington, Vermont. Both chipmakers, nonetheless, have stayed tight-lipped regarding the timeline and particulars of these awards.

The US Commerce Department moreover saved points obscure, insisting that congressional notification is a typical course of and doesn’t primarily indicate phrases are finalised.

Trump, acknowledged for his outspoken views, criticised the Chips Act on a podcast with Joe Rogan. He known as it a misguided giveaway to wealthy companies and argued tariffs would have been a larger technique to encourage chip manufacturing throughout the US.

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

Despite the political noise, TSMC’s stock hasn’t flinched. The agency’s shares have carried out successfully this 12 months, fuelled by sky-high demand for artificial intelligence experience. 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 price.