Trump says TSMC would face 100% tax if it doesn’t build US plants

Investing.com-- U.S. President Donald Trump said on Tuesday that he warned Taiwan Semiconductor Manufacturing Co (NYSE:TSM) (TW:2330) of a 100% tax imposition if it did not establish manufacturing facilities in the United States.

Trump criticized the Biden administration for awarding a $6.6 billion grant to TSMC’s U.S. unit for semiconductor manufacturing in Phoenix, Arizona, arguing that firms like TSMC do not need government subsidies.

Speaking at a Republican National Congressional Committee event, he emphasized that during his tenure, he offered no subsidies but instead leveraged potential taxes to encourage domestic investment.

In March, TSMC announced plans to invest $100 billion in the U.S., including the construction of five additional chip plants, as part of efforts to diversify its manufacturing footprint and bolster U.S. semiconductor production.

The chipmaker may be liable for a penalty exceeding $1 billion to resolve a U.S. export control probe, after one of its chips was found in a Huawei Technologies AI processor, Reuters reported on Tuesday citing sources familiar with the matter.

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