Trump Warns TSMC: Build Chip Plant in US or Face 100% Import Tax
Photo Credit: @TaiwanenPeru
US President Donald Trump has issued a strong warning to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s top contract chipmaker. Speaking at a Republican National Congressional Committee event in Washington, Trump said he told TSMC to either build its manufacturing plant in the US or face a heavy import tax of up to 100%.
Trump emphasized that he didn’t offer the company any financial incentives, indirectly criticizing the Biden administration’s $6.6 billion grant to TSMC to support its Arizona expansion. “I gave them no money. I just said, build here or pay big tax,” he remarked.
In March 2025, TSMC announced plans to invest $100 billion over four years in US-based chip plants due to rising customer demand. While the announcement stirred debate in Taiwan, President Lai Ching-te assured citizens that the decision was based on the company’s strategic goals and not due to US pressure.
Trump’s remarks come amid growing scrutiny of TSMC’s links to Huawei. A Reuters report recently revealed that the US may fine the company over $1 billion following an investigation into how one of its chips ended up in Huawei’s high-end AI processor, the Ascend 910B. The US had previously restricted Huawei from acquiring advanced semiconductor technologies, citing national security concerns and allegations of sanctions violations.
The situation highlights ongoing tensions in the global semiconductor industry, with the US pushing for more domestic chip production while tightening export controls on technology flowing to China.
Source: Business Standard
