Taiwanese chip giant TSMC has considered returning the $6.6 billion in subsidies it received from the US government under the CHIPS Act. The company views this decision as a reaction to the Trump administration’s plan to hold stakes in companies that benefit from the incentives.
TSMC to Return US Grants
The Trump administration views the stimulus package, launched during the Biden administration, as a “free money handout,” and in return, TSMC is demanding stakes in companies like Intel, Micron, and Samsung. However, according to the Wall Street Journal, TSMC executives are discussing returning the $6.6 billion subsidy it received for its Arizona plant to avoid falling into this equity model.
The company is uneasy about the US government’s stake. Taiwanese media, however, sees this initiative as the first step by the US to nationalize TSMC. One newspaper reported that US officials will not seek stakes from companies that have made major investments in the country.
Given that TSMC has pledged hundreds of billions of dollars in investments, the likelihood of the company transferring its shares appears low at this time. This “share-for-subsidy” model is rumored to be more applicable to struggling companies like Intel, which need government support to recover.
It’s a matter of interest how the relationship between TSMC and the Trump administration will unfold in the coming period. The two sides have deepened their cooperation in recent months and are known to avoid any disagreements that could damage their relationship. What are your thoughts on this? Share your thoughts with us in the comments section below.
