U.S. President Trump stated on Tuesday that he has warned semiconductor manufacturer TSMC that if the company does not build a plant in the United States, they would face a tax rate as high as 100%. Trump criticized the previous Biden administration during an event for providing a $6.6 billion subsidy to TSMC's semiconductor plant in Arizona, stating that semiconductor companies do not need these funds. Trump said, "I didn't give them money. I just said, if you don't build your plant here, you're going to pay a hefty tax."
In March this year, TSMC announced at the White House that it plans to invest an additional $100 billion in the U.S. over the next four years to boost chip production. This move raises the total investment by TSMC in the U.S. to $165 billion, which includes the construction of three new wafer fabs, two advanced packaging facilities, and a research and development center. TSMC CEO C.C. Wei stated at a press conference at the White House that this investment is considered "the largest single foreign investment in U.S. history."
During the campaign and after taking office, Trump repeatedly threatened to impose tariffs on imported chips. In February this year, Trump declared he would impose tariffs of 25% or higher on semiconductor equipment and other imported goods and expected the rates to rise significantly within a year. Analysts point out that TSMC's announcement of additional investments might be aimed at appeasing Trump to avoid the potential impact of the upcoming chip tariffs.
