TSMC is confident CHIPS Act funding will continue under Trump, CFO Huang told CNBC By Investing.com
Investing.com– TSMC (NYSE: )- the world’s largest contract chipmaker, is confident it will continue to receive U.S. government funding under President-elect Donald Trump, CFO Wendell Huang said in an interview with CNBC on Sunday.
Huang said government funding was expected to continue to flow gradually under Trump as his US plant began to meet construction and production milestones. Huang said the company has so far received $1.5 billion of the $6.6 billion promised by the Biden administration as part of CHIPS and the Science Act.
TSMC’s first factory in Arizona began producing advanced chips in the fourth quarter of 2024, Huang told CNBC, and construction of the second factory in Arizona will be completed by 2028.
TSMC received funding under the CHIPS Act for its Arizona factories as the Biden administration sought to move chip manufacturing back to the US, particularly in light of advances in artificial intelligence and concerns about China’s chip-making capabilities.
The CHIPS Act received bipartisan support and was signed into law in 2022, and the act allocates more than $50 billion to support the domestic chip industry.
Trump, who will take office on Monday, has criticized the Chips Act for its high cost. Trump also accused Taiwan of stealing the U.S. chip industry and threatened to withdraw some of the country’s defense funding.
Still, Trump is expected to leave the law unchanged, given bipartisan support for the act.
TSMC is the largest contract chip manufacturer in the world and is a key component of the global chip supply chain, as it produces advanced chips for industrial companies such as NVIDIA Corporation (NASDAQ: ). Its role has become even more prominent amid the growing development of artificial intelligence – which has greatly boosted demand for chips. TSMC posted a record fourth-quarter profit last week.
Other chipmakers such as Intel Corporation (NASDAQ: ) and Samsung Electronics Co Ltd (KS:) also received funding under the CHIPS Act.
