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The Trump administration is considering acquiring a stake in all recipients of the CHIPS Act grants, which could challenge TSMC’s autonomy.
Samsung, Micron & TSMC Could Be Forced Into President Trump’s ‘Equity Model
The U.S. government is planning to adopt a ‘chip subsidy-for-equity’ model, where equity stakes are given in exchange for CHIPS Act grants. This means eligible firms under the program must provide a portion of their company to the Trump administration. For TSMC, this could be particularly difficult due to its political and financial sensitivities.
A recent example is the deal to take a 10% stake in Intel, as it was the largest CHIPS Act beneficiary. Similarly, Samsung, Micron, and especially TSMC are under scrutiny. However, for TSMC, giving up equity would be the most challenging, given its unique position.
Taiwanese media sources claim that the equity stake measure could impact TSMC’s operations since it has operated without considering political factors. The U.S. government claims this won’t influence TSMC’s decisions but aims to bring taxpayers’ money back into the government. Despite assurances, domestic media still perceives this as an attempt by the U.S. to ‘nationalize’ Taiwan’s assets, converting them into a U.S.-owned foundry.
For now, there are no developments regarding the Trump administration taking a stake in TSMC. Given its regional investments, this model might not apply to the company, but the situation remains uncertain.
