Taiwan’s Chip Giant Confident in US Funding Despite Trump’s Criticism
A Billion-Dollar Investment in Arizona
Taiwan Semiconductor Manufacturing Co (TSMC), the largest chip company in Taiwan, is poised to receive $6.6 billion in funding from the US government to build three cutting-edge chip fabrication plants in Arizona. This investment is part of the US effort to onshore chip manufacturing and reduce reliance on foreign suppliers.
Funding Expected to Continue Under Trump Administration
Despite President-elect Donald Trump’s criticism of Taiwan’s chip industry, TSMC’s Chief Financial Officer Wendell Huang is confident that the funding will continue to roll in gradually under the new administration. In an exclusive interview, Huang revealed that the company had already received $1.5 billion in funds in the fourth quarter of last year.
Production Delays and Milestones
Following some production delays, the first fabrication plant in Arizona started producing advanced chips in the fourth quarter of last year. The construction of two more plants in Arizona is on track, with the second expected to be operational in 2028.
A Long-Standing Relationship with the US Government
TSMC’s CEO and Chairman C.C. Wei highlighted the company’s “long-standing and good relationship” with the US government, citing the commitment and support it has received on the federal, state, and city levels. Wei assured investors that the company has a “very frank and open communication” with the current and future governments.
Record Profit and Strong Demand
TSMC reported record profit for the fourth quarter on strong demand for its AI chips, sending its shares up nearly 4%. The company’s shares closed 1.36% higher on Friday.
A Low Profile Approach
In response to an investor question, Wei said that the company would not attend Trump’s inauguration, preferring to keep a low profile. Despite the controversy surrounding Trump’s criticism of Taiwan’s chip industry, TSMC remains committed to its investment in Arizona and its partnership with the US government.
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