In a bold move, U.S. President Donald Trump indicated he has pressed Taiwan Semiconductor Manufacturing Company (TSMC) to ramp up its U.S. operations or face a potential tax of up to 100%.
This pronouncement came during an event for the Republican National Congressional Committee, where Trump blasted the previous administration for awarding a $6.6 billion grant to TSMC’s American development in Phoenix, arguing that semiconductor giants are self-sufficient and need no monetary aid.
Trump recounted his previous engagement with the world’s leading chipmaker, emphasizing his leverage was devoid of financial incentives. He simply warned TSMC to build its chip plant in the U.S. or face hefty tax bills.
TSMC, known for its dominance in contract chipmaking, unveiled plans in March to dedicate an additional $100 billion to the U.S. market. This substantial investment is expected to result in the establishment of five new semiconductor fabs over the next few years.
Meanwhile, the company might face a separate challenge as it’s reported to be on the brink of negotiating a penalty potentially exceeding $1 billion. The fine, linked to a U.S. export control probe, stems from the discovery of a TSMC-manufactured chip in Huawei’s AI processor, which could further complicate its operations in the states.
