Trump's Bold Stance on TSMC: Tax Threats and Semiconductor Expansion

Former President Donald Trump threatened Taiwan Semiconductor Manufacturing Company (TSMC) with a huge tax if it didn't build plants in the U.S. He criticized the Biden administration's financial aid to the company and highlighted TSMC's $100 billion investment plan, amidst potential legal challenges over U.S. export controls.

In a recent address, former President Donald Trump expressed determination to enforce fiscal policies on foreign tech giants. He revealed a prior warning to Taiwan Semiconductor Manufacturing Company (TSMC), promising substantial taxes if they failed to establish manufacturing sectors in the United States.

Trump scrutinized his successor, President Joe Biden's administration, for extending a $6.6 billion grant to TSMC, insisting that semiconductor firms could prosper without such subsidies. He emphasized his administration's strategy was solely a tax-based approach to encourage domestic plant establishments.

In March, TSMC announced an ambitious $100 billion U.S. investment plan, including multiple new facilities. This is amidst reports of the company potentially facing hefty penalties over a U.S. probe related to a Huawei-linked chip. The developments further accentuate the competitive, regulatory climate of global technology manufacturing.

(With inputs from agencies.)