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

U.S. President-elect Donald Trump has accused Taiwan of “stealing” his country’s chip industry. But Taiwan’s biggest chip company is confident the Trump administration will continue funding its projects in the U.S.

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

Speaking to CNBC’s Emily Tan in an exclusive interview, TSMC Chief Financial Officer Wendell Huang said the funding was expected to continue to roll in gradually under Trump as the fabrication plants pass construction and production milestones. 

“As a matter of fact, in the fourth quarter, we already received the first batch of government support,” Haung said, revealing the contract chip manufacturer had got $1.5 billion in funds. 

Following some production delays, the first fabrication plant in Arizona started producing advanced chips in the fourth quarter of last year, Huang said. He added that the construction of two plants in Arizona was on track, with the second expected to be operational in 2028.

TSMC’s first investment in Arizona was announced in May 2020, with the company’s total investment in the its three projects there eventually standing at over $65 billion.

Much of the investments were committed after the Biden administration signed the bipartisan CHIPS Act in August 2022, committing almost $53 billion to invest in the domestic semiconductor supply chain and counter China.

While the incoming President is also expected to make competition with China and onshoring manufacturing a priority in his second term, there has been debate as to whether Trump and the Republican-led House would re-examine the CHIPS Act. 

During his campaign for the White House, Trump publicly criticized the bill and its price tag, arguing instead that tariffs were a more effective strategy to onshore chip manufacturing. The President-elect also accused Taiwan of “stealing” U.S. chip business.

However, industry experts have told CNBC that they expect Trump to leave the policy mostly intact due to its bipartisan support in Washington. 

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

In an earnings call following the esults, CEO and Chairman C.C. Wei highlighted TSMC’s “long-standing and good relationship” with the U.S. government and the commitment and support it has received on the federal, state and city levels. 

“Let me assure you that we have a very frank and open communication with the current government and with the future one also,” he said in response to an investor question. 

On Thursday, Wei also said that the company would not attend Trump’s inauguration as it prefers to keep a low profile.