TSMC confident in continued CHIPS Act funding under Trump, says CFO

U.S. President-elect Donald Trump has accused Taiwan of “stealing” his nation’s chip trade. However Taiwan’s greatest chip firm is assured the Trump administration will proceed funding its tasks within the U.S.

Taiwan Semiconductor Manufacturing Co has been promised $6.6 billion below the Joe Biden administration’s CHIPS and Science ACT to assist construct three cutting-edge chip fabrication vegetation in Arizona as a part of U.S. efforts to onshore chip manufacturing.

Chatting with CNBC’s Emily Tan in an unique interview, TSMC Chief Monetary Officer Wendell Huang mentioned the funding was anticipated to proceed to roll in step by step below Trump because the fabrication vegetation go development and manufacturing milestones. 

“As a matter of reality, within the fourth quarter, we already acquired the primary batch of presidency assist,” Haung mentioned, revealing the contract chip producer had bought $1.5 billion in funds. 

Following some production delays, the primary fabrication plant in Arizona began producing superior chips within the fourth quarter of final 12 months, Huang mentioned. He added that the development of two vegetation in Arizona was on observe, with the second anticipated to be operational in 2028.

TSMC’s first investment in Arizona was introduced in Might 2020, with the corporate’s complete funding within the its three tasks there finally standing at over $65 billion.

A lot of the investments have been dedicated after the Biden administration signed the bipartisan CHIPS Act in August 2022, committing almost $53 billion to put money into the home semiconductor provide chain and counter China.

Whereas the incoming President can be anticipated to make competition with China and onshoring manufacturing a precedence in his second time period, there was debate as as to if Trump and the Republican-led Home would re-examine the CHIPS Act. 

Throughout his marketing campaign for the White Home, Trump publicly criticized the invoice and its price ticket, arguing as a substitute that tariffs have been a simpler technique to onshore chip manufacturing. The President-elect additionally accused Taiwan of “stealing” U.S. chip enterprise.

Nonetheless, trade consultants have instructed CNBC that they count on Trump to go away the coverage mostly intact on account of its bipartisan assist in Washington. 

TSMC on Thursday reported record profit for the fourth quarter on robust demand for its AI chips, sending its shares up practically 4%. Shares closed 1.36% larger on Friday.

In an earnings name following the esults, CEO and Chairman C.C. Wei highlighted TSMC’s “long-standing and good relationship” with the U.S. authorities and the dedication and assist it has acquired on the federal, state and metropolis ranges. 

“Let me guarantee you that we now have a really frank and open communication with the present authorities and with the long run one additionally,” he mentioned in response to an investor query. 

On Thursday, Wei additionally mentioned that the corporate wouldn’t attend Trump’s inauguration because it prefers to maintain a low profile.