Trump warns TSMC: 100% heavy tax if they don't set up factories in the U.S.!

US President Trump recently made another statement regarding the world's largest semiconductor foundry, TSMC, saying: "If you don't set up factories in the United States, you will have to pay 100% tax!" This remark not only names specific companies but also draws renewed attention to the chip strategy and investment struggles in the context of the US-China tech war.

No factory set up and heavy taxes imposed? Trump: I didn't give them money, only pressure.

On Tuesday (April 8), Trump publicly stated at a Republican National Congressional Committee event that he had directly told TSMC to set up a factory in the United States, or else face "tariff penalties of up to 100%."

He emphasized that during his term, he did not provide any financial subsidies to TSMC, "I didn't give them a dime. I only said: If you don't come to the U.S. to build a factory, then be prepared to pay heavy taxes!"

These remarks reflect Trump's consistent "trade hawk" style and stand in stark contrast to the current President Biden's chip policy.

Biden sends $6.6 billion in subsidies, Trump criticizes "chip companies don't need money at all"

Trump simultaneously criticized the $6.6 billion subsidy program approved by the Biden administration. The funds will be allocated to TSMC's U.S. subsidiary for the development of its semiconductor manufacturing facility in Phoenix, Arizona.

"Chip companies are not short on money at all, so why give them billions?" Trump criticized, questioning the necessity and fairness of the subsidies.

According to the plan announced by the Biden administration, this subsidy will help TSMC accelerate the construction of three chip factories in the United States, further strengthening the autonomy of the U.S. semiconductor supply chain.

TSMC plans to invest 100 billion USD to expand five wafer fabs in the United States.

Although there has been no response to Trump's latest remarks (TSMC declined to comment), TSMC has indeed increased its investment in the United States in recent years.

In March this year, TSMC stated at the White House that it plans to invest $100 billion in the United States over the next few years, with plans to build five new semiconductor factories, primarily focused in Arizona.

This is not only the largest overseas expansion plan in the company's history, but also reflects a strategic shift in US-Taiwan technology cooperation.

TSMC may face a fine of $1 billion due to the Huawei chip incident.

On the same day (April 8), Reuters reported that TSMC might face a U.S. export control investigation due to its involvement with a chip flowing into Huawei's AI processor in China. If violations are ultimately confirmed, the company could be required to pay over $1 billion in fines to reach a settlement.

This incident has once again sparked external attention on the technology supply chain and international sanctions regulations, and may further impact TSMC's development pace and regulatory pressure in the United States.

(Reuters: TSMC may face a heavy fine of 1 billion USD in the US! Allegations of being investigated for manufacturing AI chips for Huawei)

Trump chip brand strikes again, the technology war continues to escalate.

Trump has always advocated for technology manufacturing to "return to the United States," and this time, his threat to TSMC of "heavy taxes if no factory is set up" is also seen by outsiders as part of his economic agenda on the road to returning to the White House.

As the technology war between the US and China continues to escalate, the semiconductor industry has long ceased to be merely an economic issue and has instead become the core battleground of geopolitics. Trump's remarks may also lead TSMC, the US government, and other semiconductor companies to be more cautious in their future policy directions.

This article Trump warns TSMC: 100% heavy tax if factories are not set up in the US! First appeared in Chain News ABMedia.