President Donald Trump claimed on Tuesday that he told Taiwan Semiconductor Manufacturing Company (TSMC) that it would face a tax of up to 100% if it failed to build its factories in the United States.
At a Republican National Congressional Committee event, Trump criticized the Biden administration for giving TSMC a $6.6 billion grant for semiconductor production in Phoenix, Arizona. He argued that semiconductor companies do not need such financial support.
“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 largest contract chipmaker, announced its plan to invest an additional $100 billion in the U.S., which includes building five new chip manufacturing plants.
Earlier reports from Reuters revealed that TSMC may face a fine of over $1 billion to resolve a U.S. export control investigation into a chip that ended up in a Huawei AI processor.
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