TSMC Arizona’s first chip factory on November 7, 2024
Katie Tarasova
US President-elect Donald Trump accused Taiwan of “stealing” his country’s chip industry. But Taiwan’s largest chip company is confident that the Trump administration will continue to fund its US projects.
Taiwan Semiconductor Manufacturing Co It has been promised $6.6 billion under the Joe Biden administration. CHIPS and ACT science to help build three state-of-the-art chip manufacturing plants in Arizona as part of US efforts to onshore chip manufacturing.
In an exclusive interview with CNBC’s Emily Tan, TSMC Chief Financial Officer Wendell Huang said funding was expected to continue trickling in under Trump as manufacturing plants pass construction and production milestones.
“In fact, in the fourth quarter we already received the first batch of government support,” Haung said, revealing that the contract chipmaker had received $1.5 billion in funding.
After some production delays, the first manufacturing plant in Arizona began producing advanced chips in the fourth quarter of last year, Huang said.. He added that the construction of two plants in Arizona was on its way, and the second was expected to be operational in 2028.
TSMC first investment in Arizona was announced in May 2020, and the company’s total investment in its three projects there ultimately surpassed $65 billion.
Much of the investments were committed after the Biden administration signed the bipartisan CHIPS Act in August 2022, committing almost 53 billion dollars invest in the domestic semiconductor supply chain and counter China.
While the incoming president is also expected to make competition with China and offshoring manufacturing a priority in his second term, there has been debate over whether Trump and the Republican-led House of Representatives would re-examine the CHIPS Act.
During his campaign for the White House, Trump publicly criticized the bill and its price tag, arguing instead that tariffs were a more effective strategy for domestic chip manufacturing. The president-elect also accused Taiwan of “stealing” the American chip business.
However, industry experts told CNBC they expect Trump to leave the policy largely untouched because of his bipartisan support in Washington.
TSMC on Thursday reported a record fourth-quarter profit on strong demand for its AI chips, sending its shares up nearly 4%. Shares closed 1.36% higher on Friday.
In a post-earnings earnings conference call, CEO and President CC Wei highlighted TSMC’s “good and long-standing relationship” with the U.S. government and the commitment and support it has received at the federal, state and municipal.
“Let me assure you that we have very frank and open communication with the current government and also with the future,” he said in response to a question from an investor.
On Thursday, Wei also said the company would not attend Trump’s inauguration because it prefers to keep a low profile.
