US President Donald Trump has stated that he told the Taiwan Semiconductor Manufacturing Company (TSMC) that it will be subjected to a tax of up to 100% should the company fail to construct its planned factories within the country. This development coincides with a separate report indicating that the Apple chipmaker could potentially face a penalty of $1 billion or more to resolve an ongoing export control investigation regarding a chip it manufactured that was subsequently found within a Huawei AI processor.
During a Republican National Congressional Committee event, Trump criticised Joe Biden’s administration for granting TSMC’s US unit a $6.6 billion subsidy for semiconductor production in Phoenix, Arizona, arguing that chip companies do not require such financial assistance.
“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,” Trump stated.
In March, TSMC, the world’s leading contract chip manufacturer, announced at the White House a new $100 billion investment in the US, including the construction of five additional chip facilities in the coming years.
TSMC may be fined $1 billion
Separately, Reuters reported that the chipmaker could be subject to a penalty of $1 billion or more to resolve a US export control investigation concerning a chip it produced that was found in a Huawei Technologies AI processor.
Citing sources, the news agency said that the US Department of Commerce has been probing TSMC’s work for China-based Sophgo. The design company’s TSMC-made chip matched one found in Huawei’s high-end Ascend 910B AI processor.
Huawei is on a US trade list that restricts it from receiving goods made with US technology.
