Trump Again Attacks TSMC, Accuses It of "Stealing" US Chip Industry, Company's Stock Drops

Trump Again Attacks TSMC, Accuses It of "Stealing" US Chip Industry, Company's Stock DropsFormer US President Donald Trump, in a recent interview, once again targeted Taiwan Semiconductor Manufacturing Company (TSMC), accusing it of "stealing the US chip industry." Trump further stated that if he were re-elected as President, he would impose tariffs on chips originating from Taiwan

Trump Again Attacks TSMC, Accuses It of "Stealing" US Chip Industry, Company's Stock Drops

Former US President Donald Trump, in a recent interview, once again targeted Taiwan Semiconductor Manufacturing Company (TSMC), accusing it of "stealing the US chip industry." Trump further stated that if he were re-elected as President, he would impose tariffs on chips originating from Taiwan. This statement immediately sparked market concerns, causing TSMC's share price to close down 4.3% on Monday.

Trump, during a podcast, claimed: "You know, they stole our chip industry..." He argued that the US's past reliance on TSMC for chip manufacturing and its investment in TSMC's US factory construction was a "bad deal." Trump also stated that foreign companies should not use US government funds in the US, "because they're not going to leave us with good companies anyway."

TSMC is the world's leading chip manufacturer, with customers including prominent tech companies like Nvidia and Apple. According to UBS analysts, over 90% of high-end chips globally are manufactured by TSMC. Although companies like Intel and Samsung are trying to compete with TSMC, they face a range of challenges.

Trump's remarks have drawn widespread attention from the industry. Mizuho Securities analysts believe a Trump election would negatively impact TSMC. Citigroup analysts point out that tariffs on chips from Taiwan would increase costs across the entire chip supply chain and be difficult to implement, requiring complex audits of equipment containing various chips.

Moreover, TSMC is set to receive nearly $7 billion in subsidies from the US Department of Commerce for the construction of a wafer fabrication plant in Arizona. This is part of the "Chips Act," aimed at fostering the US chip industry. TSMC CEO C.C. Wei has stated that construction in Arizona is progressing steadily, with production expected to gradually increase starting from 2025.

Despite this, Trump's remarks have still caused market anxiety. When Trump first made similar remarks this summer, the semiconductor industry index VanEck Semiconductor ETF lost $675 billion in market value within a week, and TSMC's stock price fell by over 10%.

It's worth noting that US companies are facing increasing pressure to build chip manufacturing bases in the US. Intel, a prime example under the "Chips Act," faces various challenges. Stacy Rasgon, an analyst at research firm Bernstein, said: "We want to build advanced infrastructure in the US, but honestly, from a policy perspective, it doesn't matter who builds it." Rasgon also believes Trump's accusation that TSMC "stole" the US chip industry is "absurd."

Currently, the US Department of Commerce has not disbursed funds to TSMC or other major chip companies, but these funds are expected to be released by the end of the year, provided these companies meet specific targets.

With the US election approaching, Trump's statements have once again shifted focus to the technology competition between China and the US. This event will undoubtedly have a significant impact on the global semiconductor industry.