March 6, 2025
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Exclusive: TSMC’s bold stance on US chip subsidies – Find out why they’re not backing down!

Exclusive: TSMC’s bold stance on US chip subsidies – Find out why they’re not backing down!

In the fast-paced world of technology and geopolitics, power moves are often met with resistance and rebuttal. Taiwan Semiconductor Manufacturing Company (TSMC) found itself at the center of such a showdown with the United States government and its president, Donald Trump.

  1. TSMC Stands Firm:
  • TSMC’s Chair and CEO, CC Wei, displayed unwavering confidence in the face of potential subsidy loss from Washington. His resounding declaration of being unafraid and demanding fairness struck a chord with investors and industry watchers alike.
  • In a bid to reassure stakeholders and maintain competitive edge, Wei emphasized TSMC’s focus on fair competition and meeting customer needs, rather than relying on government support.
  1. Clashing with Trump:
  • Trump’s move to eliminate the US Chips Act, aimed at bolstering TSMC’s investments with public funds, was met with resistance from the company. Wei’s evasion of questions regarding guarantees and insistence on TSMC’s independence and global reach hinted at a deeper strategy at play.
  • The joint press conference with Taiwan’s president was a strategic maneuver to quell fears of TSMC diverting its commitments away from its roots. TSMC’s allegiance to Taiwan, often dubbed the “sacred mountain that protects the nation,” underlined its ties to its homeland, even amidst pivotal US investments.
  1. Playing the Long Game:
  • TSMC’s strategic expansion plans in the US, in addition to its robust growth in Taiwan, showcased the company’s commitment to both territories. The decision to focus on improving process technology in the US, while retaining next-generation R&D in Taiwan, highlighted a balanced approach to innovation and market share growth.
  • Unlike competitors like Samsung and Intel, TSMC’s unique model of producing chips based on other companies’ designs has propelled it to the forefront of the semiconductor industry. This emphasis on collaboration and specialization has not only boosted TSMC’s market share but also reshaped the chip manufacturing landscape.

In conclusion, TSMC’s bold stance and strategic decisions in the face of political upheaval exemplify resilience and adaptability in a complex global landscape. As the tech industry continues to evolve, TSMC’s unwavering commitment to innovation and fair competition sets a precedent for industry players worldwide. It is not merely about claiming the top spot; it’s about staying there with integrity and forward-thinking strategies.

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