TSMC Arizona’s first chip factory completed on November 7, 2024
Katie Tarasoff
US President-elect Donald Trump has accused Taiwan of “stealing” his country’s semiconductor industry. But Taiwan’s largest semiconductor company is confident the Trump administration will continue funding its projects in the United States.
Taiwan Semiconductor Manufacturing Co., Ltd. Under President Joe Biden’s Chips and Science Act, $6.6 billion has been pledged to help build three state-of-the-art chip manufacturing plants in Arizona as part of the U.S.’s commitment to land-based chip manufacturing.
TSMC Chief Financial Officer Wendell Huang said in an exclusive interview with CNBC’s Emily Tan that capital is expected to continue trickling in under the Trump administration as manufacturing plants pass construction and production milestones. he said.
“As a matter of fact, in the fourth quarter, we have already received the first round of government support,” Haun said, revealing that the contract chipmaker had secured $1.5 billion in funding.
After some production delays, the first manufacturing facility in Arizona began producing advanced chips in the fourth quarter of last year, Huang said. He added that construction of the two factories in Arizona is progressing well, with the second factory expected to be operational in 2028.
TSMC’s first investment in Arizona was announced in May 2020, and the company’s total investment in three projects in Arizona ultimately exceeded $65 billion.
Much of the investment was committed after the Biden administration signed the bipartisan CHIPS Act in August 2022, pledging about $53 billion to invest in the domestic semiconductor supply chain and counter China.
The next president is also expected to prioritize competition with China and the domestication of manufacturing in his second term, but questions remain about whether President Trump and the Republican-led House of Representatives will reconsider the CHIPS Act. There was a debate.
During his campaign for the White House, Trump publicly criticized the bill and its price, arguing instead that tariffs were a more effective strategy for domestic chip manufacturing. The president-elect also accused Taiwan of “stealing” America’s semiconductor business.
But industry experts told CNBC they expect President Trump to leave the policy largely unchanged given bipartisan support in Washington.
TSMC on Thursday reported record fourth-quarter profits on strong demand for its AI chips, sending its stock up nearly 4%. The stock closed 1.36% higher on Friday.
In a post-results earnings call, CEO and Chairman CC Wei praised TSMC’s “longstanding and successful relationship” with the U.S. government and the dedication and support it has received at the federal, state and city levels. emphasized.
“I want to assure you that we have very frank and open communication with the current government and with any future government,” he said in response to questions from investors.
Wei also said Thursday that the company would not attend President Trump’s inauguration because it prefers to maintain a low profile.
