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Updated at 21:10 ET (01:10 GMT) with additional context on TSMC, CHIPS Act
Investing.com-- Taiwan Semiconductor Manufacturing Corp (NYSE:TSM) executives held preliminary discussions over returning their U.S. government subsidies if the Donald Trump administration seeks equity in the chipmaker, the Wall Street Journal reported on Thursday.
The talks come after the government confirmed earlier this week that it will take a 10% stake in TSMC rival Intel (NASDAQ:INTC) in exchange for its subsidies under the CHIPS Act.
TSMC received some $6.6 billion in subsidies for an Arizona plant that began its first leg of production in late-2024.
But TSMC, the world’s biggest contract chipmaker, has never relied heavily on government support, and is considering returning the subsidies if the Trump administration seeks a stake, the WSJ reported, citing people familiar with the discussions.
Separately, the WSJ reported that the Trump administration was not looking to own equity in companies like TSMC and Micron (NASDAQ:MU), which are increasing their investments in the United States. TSMC had earlier this year pledged up to $165 billion to invest in the U.S. over the coming years.
The company was initially pressured by the Biden administration to build more manufacturing capacity in the United States, with grants under the CHIPS Act serving as a motivator.
Trump also called for more investment in the U.S., having threatened steep tariffs on semiconductor imports to encourage local manufacturing. But he had criticized the CHIPS Act and called for its end, with Trump’s administration also claiming that the act was just giving away money.
Apart from TSMC, other Asian chipmakers receiving aid under the CHIPS Act include Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660), both of which have committed billions towards building more U.S. chip facilities.
Intel is by far the biggest receiver of government aid under the act, especially as the chipmaker struggles with years of slowing sales and a loss-making foundry business.
But Intel is at the heart of Trump’s ambitions for locally produced chips.