Chipmakers Sound Alarm as Trump Targets CHIPS Act, Threatening TSMC's US Expansion
Chipmakers, including TSMC, are on high alert as President Trump targets the CHIPS Act, threatening subsidies and new US semiconductor plants.
By Blip Tech
2 min read
Summary
Background:
- The CHIPS Act, a bipartisan legislation aimed at boosting U.S. semiconductor manufacturing and reducing reliance on foreign suppliers, is facing threats from President Trump.
- Apple announced plans in 2022 to produce 'Made in America' chips as part of the CHIPS Act initiative, with TSMC building plants in Arizona.
Recent Developments:
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Trump's Criticism:
- President Trump has criticized the CHIPS Act, describing it as a 'horrible, horrible thing' and calling for its reversal.
- The administration is reportedly working to dismantle the act and has already made layoffs in the team managing CHIPS Act grants.
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Industry Response:
- Chipmakers, including members of the Semiconductor Industry Association (SIA), held a conference call to discuss Trump's remarks and their potential impact.
- Executives are seeking legal advice on the administration's ability to terminate signed contracts and claw back funding.
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TSMC's Position:
- TSMC, a key player in the CHIPS Act initiative, has made significant investments in U.S. production capacity but remains uncertain about future plans due to Trump's attacks.
- The $100M investment recently announced by TSMC is now at risk.
Implications:
- If CHIPS Act funding is compromised, it could impact TSMC's plans for new plants and the broader semiconductor industry in the U.S., including Apple's 'Made in America' chip initiative.
