TSMC Confident in U.S. Funding Under Trump Administration

TSMC (NYSE:TSM), the world’s largest contract chipmaker, expects continued U.S. government funding under President Donald Trump, CFO Wendell Huang said in a CNBC interview. TSMC has so far received $1.5 billion of the $6.6 billion allocated under the CHIPS and Science Act for its Arizona facilities. The act, signed in 2022, committed over $50 billion to bolster the domestic semiconductor industry.

The company’s first Arizona fabrication plant began producing advanced chips in late 2024, with construction on its second plant slated for completion by 2028. These milestones align with the Biden administration’s push to localize chip production amid rising artificial intelligence development and concerns over China’s capabilities.

Although Trump criticized the CHIPS Act’s cost and accused Taiwan of undermining U.S. chip production, bipartisan support makes significant changes to the act unlikely. The act remains crucial to countering supply chain vulnerabilities and strengthening the U.S. semiconductor sector.

TSMC plays a pivotal role in global chip production, manufacturing advanced semiconductors for industry leaders like NVIDIA (NASDAQ:NVDA). Demand for its chips has surged alongside advancements in AI, driving the company to record profits in Q4 2024.

Other major chipmakers, including Intel Corporation (NASDAQ:INTC) and Samsung Electronics (KS:005930), have also benefited from CHIPS Act funding, which underscores the act's broad impact on revitalizing U.S. semiconductor manufacturing. TSMC’s progress in the U.S. reflects its commitment to maintaining leadership in an increasingly critical industry.