Former President Donald Trump recently stated that he warned the Taiwan Semiconductor Manufacturing Company (TSMC) it could face a tax of up to 100% if it failed to construct its planned manufacturing facilities in the United States. Trump made these comments during an event organized by the Republican National Congressional Committee, where he criticized the Biden administration for granting TSMC a significant grant of $6.6 billion to support its semiconductor production in Phoenix, Arizona, asserting that chip manufacturers do not require such financial incentives.

“TSMC, I gave them no money ... all I did was say, if you don't build your plant here, you're going to pay a big tax,” said Trump, underscoring his approach to encouraging domestic manufacturing. This stance aligns with TSMC's plans announced earlier this year, which outline a $100 billion investment to develop five new chip facilities across the U.S.

Additionally, TSMC is facing scrutiny as it navigates an export control investigation related to a chip produced for Huawei Technologies that allegedly contravenes U.S. trade restrictions. Reports suggest TSMC may incur penalties exceeding $1 billion if the investigation reaches a conclusion.

As the semiconductor industry continues to garner attention from U.S. lawmakers, Trump reiterated the importance of reshoring manufacturing, emphasizing that America must ensure its self-reliance in technology and manufacturing sectors. “We have to protect ourselves at some point,” he declared, echoing a long-standing goal to bolster American chip production amid rising concerns over supply chain vulnerabilities.

For more detailed insights on Trump's statements and their potential implications for U.S. semiconductor policy, check the full articles on Channel News Asia and India Times.