Taiwan Semiconductor Manufacturing Co. (TSM) expects the U.S. government funds it has been promised to continue under the new administration of President Donald Trump.
TSMC, as the company is commonly known, has been promised $6.6 billion U.S. under the CHIPS and Science Act to help build three microchip fabrication plants in Arizona.
The billions in government funding is part of U.S. efforts to relocate the manufacturing of microchips and semiconductors to America.
While Trump has made comments about canceling the funding that was awarded under predecessor Joe Biden, TSMC says it is confident the Trump administration will continue funding its projects in Arizona.
Speaking to CNBC, TSMC Chief Financial Officer (CFO) Wendell Huang said the funding is expected to continue under Trump as the fabrication plants reach various milestones.
To date, TSMC says it has received $1.50 billion U.S. in government funds for its U.S. chip fabrication plants.
The company’s first fabrication plant in Arizona began producing advanced microchips in last year’s fourth quarter, said Huang.
He added that the second fabrication plant is expected to be operational in 2028, with the company’s total investment in its three U.S. plants eventually totaling $65 billion U.S.
The Biden administration signed the CHIPS Act in August 2022, committing almost $53 billion U.S. to invest in the domestic semiconductor supply chain to help counter China.
There is currently some debate as to whether Trump and the Republican-led Congress would re-examine the CHIPS Act that was implemented under a Democratic administration.
During his election campaign last year, Trump publicly criticized the bill and its price tag, arguing instead that tariffs were a more effective strategy to onshore chip manufacturing.
But analysts have said that they expect Trump to leave the policy mostly intact due to its necessity and bipartisan support in Washington, D.C.
TSMC recently reported record profits for the fourth quarter of 2024 as demand for the artificial intelligence (A.I.) chips it makes soars.
The stock of TSMC has gained 87% over the last 12 months to currently trade at $211.50 U.S. per share.
