TSMC Said to Discuss Returning Government Subsidies if Trump Admin. Seeks St...

TMTPOST -- Taiwan Semiconductor Manufacturing Co., (TSMC) could be one of opponents if the Trump administration wants to expand its stake-taking deal with Intel Corporation to other companies receiving U.S. government subsidies for the semiconductor industry, a report on Thursday suggested.

Credit：TSMC

TSMC executives have had preliminary discussions about handing back their U.S. government subsidies if the Trump administration asks to become a stockholder, the Wall Street Journal cited people familiar with the matter. The news, though not being confirmed yet, can be deemed as a sign that such move would have faced opposition from companies.

The U.S. Department of Commerce has awarded TSMC up to $6.6 billion in direct funding under the CHIPS and Science Act of 2022 (CHIPS Act) in support of the company’s chip fabrication (fab) in in Phoenix, Arizona. TSMC has committed to investment of more than $65 billion in three greenfield leading-edge fabs, which will manufacture the world’s most advanced semiconductors. The Taiwan-based company in March announced it intends to expand its investment in U.S. by $100 billion with three new fabs.

U.S. Commerce Secretary Howard Lutnick on Tuesday confirmed the government is in talks with Intel over the chipmaker’s 10% stake. He assailed the act signed by former President Joe Biden for giving semiconductor manufacturers subsidies without any return for U.S. taxpayers.

Lutnick said the plan to get a stake would not give the U.S. governance or voting rights in the company, even though it could make the federal government Intel’s largest shareholder.He also signaled President Donald Trump could seek clinching similar deals with other recipients of CHIPS funds.

Lutnick later Tuesday was reported to be working on how the U.S. federal government can receive stakes in exchange for funds under the CHIPS Act Incentives Program for companies such as Micron Technology, Inc., TSMC and Samsung Electronics.

The Wall Street Journal reported on Thursday that TSMC has never relied heavily on U.S. financial support though its plan to build fabs in Arizona was made under pressure from the former Biden administration. And TSMC may be not U.S. President Donald Trump’s target when he weighs the stake-for-funding deal.

The report said White House isn’t eyeing companies like TSMC and Micron.

The Trump administration isn’t looking to hold equity in companies like TSMC that are increasing their investments in U.S., instead, companies that aren’t boosting their pledges could give the government equity in exchange for subsidies, the report cited a government official. The official said the Commerce Department isn’t looking for equities from TSMC and Micron.