WSJ Cites U.S. Officials
TSMC and Micron Announce Additional Investments in the U.S.
The Wall Street Journal (WSJ) reported on the 21st (local time) that while the Donald Trump administration is considering acquiring stakes in companies in exchange for subsidies under the CHIPS Act, it does not plan to acquire stakes in large corporations that are increasing their investments in the United States.
An official from the Trump administration told the WSJ that the Department of Commerce is not considering holding stakes in companies like Taiwan's TSMC, which are expanding their investments in the U.S. In contrast, the official stated that companies not increasing their investment commitments may be required to provide equity in exchange for subsidies. "The Department of Commerce is not considering acquiring stakes in TSMC or Micron," the official said.
The WSJ reported, "U.S. Secretary of Commerce Howard Lutnick has requested that companies receiving subsidies under the CHIPS Act increase their total investments in the United States, aiming to negotiate more favorable terms for American taxpayers."
In December of last year, during the previous Joe Biden administration, the U.S. Department of Commerce decided to provide subsidies of $6.6 billion (about 9.2 trillion won) to TSMC, $6.2 billion (about 8.6 trillion won) to Micron, and $4.75 billion (about 6.6 trillion won) to Samsung Electronics under the CHIPS Act. The amount of subsidies was determined based on the scale of U.S. investments promised by these companies, and the subsidies are to be paid out sequentially as the projects are carried out. However, since TSMC and Micron have already announced additional investment plans in the U.S. after the launch of the Trump administration, they are not required to provide equity in exchange for subsidies, according to the WSJ report.
Previously, on the 19th, Secretary Lutnick stated that he was attempting to acquire a stake in Intel using subsidies provided under the CHIPS Act. Lutnick said, "The previous Biden administration simply gave money to Intel, TSMC, and all companies," adding, "President Trump is changing this to 'If you want money, we want equity. If you want money, we want a share of the profits.'" His remarks have heightened industry concerns that the Trump administration may acquire stakes not only in Intel but also in TSMC and Samsung Electronics.
According to anonymous sources, TSMC executives have held preliminary discussions about returning subsidies if the U.S. government demands equity in exchange. It is reported that TSMC is not heavily dependent on U.S. government subsidies for its investments in the United States.
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