Trump Claims TSMC’s $300 Billion Investment in the US in Unexpected Statement

This article does not constitute investment advice. The author holds no financial positions in any of the stocks mentioned.

President Trump’s Announcement of TSMC’s $300 Billion US Investment

In a recent interview with CNBC, President Donald Trump revealed that Taiwan’s leading semiconductor manufacturer, TSMC, is set to invest an impressive $300 billion in the United States to establish chip manufacturing facilities. The cornerstone of this investment will be in Arizona, where TSMC plans to create six new chip fabrication plants, marking a historic $165 billion foreign direct investment—the largest of its kind in U. S.history. Following the president’s announcement, TSMC’s stock faced declines in both the Taiwanese and American markets, although the company chose not to comment on the president’s statements.

Trade Talks and Market Implications

Trump made these announcements during discussions about trade negotiations with European and Asian nations, highlighting countries like South Korea and Germany that are reportedly opening their markets to U. S.products. He also indicated that his administration intends to impose new tariffs soon, impacting sectors such as pharmaceuticals and semiconductors. The president noted that countries like Switzerland have profited significantly from the pharmaceutical sector and promised to announce targeted tariffs soon.

Regarding semiconductors, Trump emphasized, “we will be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States.”Although TSMC’s substantial investment in U. S.chip production is noteworthy, it’s essential to remember that the majority of advanced chip manufacturing capabilities remain concentrated in Taiwan and South Korea. This situation is partly due to Intel’s ongoing challenges in producing high-end chips.

Speculation Surrounding TSMC and Intel

The recent trade negotiations have reignited speculation about a potential Taiwanese investment in Intel. Earlier this year, rumors circulated that TSMC might consider a joint venture with Intel to help the latter overcome its manufacturing hurdles. However, such an investment seems unlikely, as Intel’s difficulties stem more from technological execution rather than a lack of financial resources.

Understanding the Economic Impact

In discussing potential semiconductor-specific tariffs, Trump reiterated TSMC’s commitment to manufacturing in the U. S., stating, “they’re being made in the United States. We have the biggest in the world, as you know, from Taiwan is coming over and spending 300 billion dollars in Arizona, building the biggest plant in the world for chips and semiconductors.”

Earlier this year, TSMC expanded its initial $65 billion investment in the U. S.to an impressive $100 billion, culminating in the announcement of a total of six fabrication facilities. This investment is projected to generate $200 billion in economic benefits across the U. S.over the next decade, although it remains unclear if Trump’s $300 billion figure encompasses these anticipated benefits.

Given Trump’s remarks regarding upcoming semiconductor tariffs, it appears he may be signaling an intent to boost revenue from these new trade policies.

Source & Images