Trump Claims He Warned TSMC of 100% Tax for Not Building in the U.S.

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In a bold claim, former President Donald Trump stated that he had warned Taiwan Semiconductor Manufacturing Company (TSMC) executives that they could face a punitive tax of up to 100% if they failed to build semiconductor manufacturing plants in the United States.

This assertion was made during a Republican National Congressional Committee event, where Trump criticized the previous administration’s subsidy deal with TSMC, which had been granted a $6.6 billion grant for its new factory in Phoenix, Arizona.

Trump’s comments have sparked a debate over the role of government subsidies and the U.S.’s broader strategy to boost its semiconductor manufacturing capabilities, amid concerns about national security and economic competition with China.

At the event, Trump recounted his direct warning to TSMC executives, suggesting that the semiconductor giant would face escalating taxes if it chose not to invest in U.S.-based production.

“I told them they’d face a tax of 25%, 50%, 75%, or even 100%,” Trump declared. The former president emphasized his belief that companies like TSMC, with billions in revenues, should not require taxpayer-funded incentives to build in the U.S.

TSMC, the world’s largest contract semiconductor manufacturer, has been the subject of intense scrutiny as the U.S. seeks to reduce its reliance on foreign chipmakers, particularly in the wake of supply chain disruptions and geopolitical tensions with China.

As part of its U.S. expansion strategy, TSMC announced plans to invest $100 billion in American operations, including the construction of multiple new chip production facilities over the coming years.

Despite the massive investment, Trump remains critical of the subsidies, arguing that TSMC’s decision to build a plant in Arizona was motivated more by government pressure than corporate need.

Critics of the former president’s comments argue that such a tax could undermine international trade relations and further complicate efforts to boost the U.S. semiconductor industry.

Trump’s remarks have added fuel to the ongoing debate surrounding the U.S. government’s efforts to attract more high-tech manufacturing.

As the demand for semiconductors surges, particularly with the rise of artificial intelligence and electric vehicles, the stakes for these international companies and their investment decisions have never been higher.

For more on TSMC’s expansion in the U.S., including its multi-billion-dollar investment plans, stay tuned for further updates.

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