TSMC Expects Continued Support from Trump Administration for CHIPS Act Funding

Taiwan Semiconductor Manufacturing Company (TSMC) is optimistic about its funding under the CHIPS and Science Act even as Donald Trump prepares to take office as President again. The company has been promised $6.6 billion by the Biden administration to support the construction of three advanced chip fabrication plants in Arizona, a key move toward boosting domestic semiconductor manufacturing in the U.S.

During an exclusive interview with CNBC, TSMC's Chief Financial Officer, Wendell Huang, expressed confidence that the incoming Trump administration would uphold the existing funding arrangements as construction progresses. Huang highlighted that TSMC had already received $1.5 billion from the government as part of this initiative by the end of the previous year.

Despite some initial production delays, TSMC's first plant in Arizona began producing advanced semiconductors last quarter. Huang noted that the second plant is set to start operations in 2028, with construction timelines remaining on track. TSMC announced its investment plans for Arizona in May 2020, with total commitments for the three facilities exceeding $65 billion.

Much of this funding became available following the bipartisan signing of the CHIPS Act by President Biden in August 2022, which allocated nearly $53 billion to enhance the U.S. semiconductor supply chain and address competition with China.

While Trump has publicly criticized the CHIPS Act during his campaign, labeling it overly expensive, industry analysts suggest that he might leave the policy largely intact due to its bipartisan backing in Congress. Traditionally, the semiconductor industry has emphasized the importance of collaboration with the U.S. government to maintain its competitive edge.

On the financial front, TSMC recently reported record profits for the fourth quarter, primarily driven by soaring demand for its artificial intelligence chips. This success, coupled with its robust relationship with the U.S. government at various levels, reinforces TSMC's strong position within the industry.

During an earnings call, TSMC's CEO and Chairman, C.C. Wei, acknowledged the "open and frank communication" the company maintains with both the current and future administrations, reaffirming its ongoing commitment to collaboration as strategic projects continue to progress.

Despite the political changes, TSMC remains focused on its core mission and is poised to adapt as needed while securing essential support for its ambitious American manufacturing endeavors.

TSMC, CHIPS, Funding