TAIPEI (Taiwan News) — A White House official said on Friday the US government is not seeking to acquire equity in Taiwan Semiconductor Manufacturing Company.
The comment comes after US Commerce Secretary Howard Lutnick announced Wednesday that the government intends to acquire a 10% stake in Intel and is considering similar moves for other recipients of CHIPS Act funding, per The Wall Street Journal. The act, originally conceived under the first Trump administration, was designed to encourage major chipmakers like TSMC to expand US production.
TSMC executives have already discussed returning US grants if the Trump administration pushes for equity ownership. A White House official confirmed the Wall Street Journal report, clarifying that Washington is not pursuing equity in companies that are actively expanding US investment, per Reuters.
TSMC declined to comment on the US government potentially seeking equity, per Newtalk.
Industry insiders told Liberty Times that, unlike Intel or Samsung, TSMC is financially strong enough to fund its Arizona fabs independently. They noted that the company maintains sole proprietorship over the US project and may not require US grants to proceed.
However, analysts warned that the US could still exert influence through other mechanisms, per Liberty Times. Although CHIPS Act funding would amount to only about 0.7% of TSMC’s equity, analysts say the US government could use national security tools, such as export controls, to exert disproportionate pressure on the company.
Insiders cited by UDN identified four major concerns regarding potential US involvement in TSMC’s operations:
- The US could restrict TSMC from serving international clients on national security grounds.
- US equity ownership could be seen as an attempt to control Taiwan’s semiconductor industry, risking heightened tensions with China.
- A potential outflow of top TSMC talent and proprietary technologies to the US could weaken Taiwan’s semiconductor leadership.
- The Biden administration already proposed revenue-sharing requirements for grant recipients, and combining that with equity ownership could allow the US to benefit twice financially.
Some insiders suggest that the best course of action may be for TSMC to reject US funding altogether if new conditions are attached to CHIPS Act grants.
