Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is reportedly considering returning its U.S. subsidies if the Trump administration pursues equity stakes in chipmakers. The report by The Wall Street Journal highlights rising tensions surrounding the CHIPS Act funding program and America’s push for domestic semiconductor independence.
TSMC’s $6.6B Subsidy and U.S. Investments
The chip giant had received nearly $6.6 billion in subsidies for its Arizona plant, which began production in late 2024. However, executives are said to be weighing the return of funds if ownership stakes become a requirement.
The concern comes shortly after Washington confirmed a 10% stake in Intel (NASDAQ:INTC) in exchange for subsidies. Unlike Intel, which has struggled with slowing sales, TSMC has pledged up to $165 billion in U.S. investments, reducing reliance on government support.
CHIPS Act Funding program and Global Chipmakers
Apart from TSMC, Asian rivals like Samsung Electronics (KS:005930) and SK Hynix (KS:000660) have also secured billions under the CHIPS Act funding program, committing to expand semiconductor facilities in the U.S.
While former President Donald Trump has criticized the CHIPS Act as a “money giveaway,” he continues to pressure chipmakers to increase local production and has threatened tariffs on imports. Intel remains the biggest beneficiary of U.S. aid, despite ongoing financial struggles, making it central to Washington’s semiconductor strategy.
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