Trump's Tax Ultimatum to TSMC: Build in the U.S. or Pay the Price

Former President Donald Trump stated that the Taiwan Semiconductor Manufacturing Company would face a tax of up to 100% if they failed to build plants in the U.S. He criticized the Biden administration for giving TSMC's U.S. unit a $6.6 billion grant. TSMC is planning significant investments in U.S. facilities.

In a bold statement on Tuesday, former President Donald Trump declared that Taiwan Semiconductor Manufacturing Company (TSMC) would incur a tax as high as 100% should they choose not to establish new factories within the United States.

During his address at a Republican National Congressional Committee event, Trump took aim at the current administration, led by Joe Biden, for allocating a $6.6 billion grant to TSMC's U.S. arm for its semiconductor production endeavors in Phoenix, Arizona. Trump highlighted, "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."

Despite the strong remarks, TSMC has not issued a formal response. Earlier reports suggested the possibility of the chip manufacturing giant facing a $1 billion fine over a U.S. export control probe related to chips found in a Huawei Technologies AI processor.

(With inputs from agencies.)