On Tuesday, President Donald Trump indicated that Taiwan Semiconductor Manufacturing Co. TSM will invest $300 billion in Arizona as part of an effort to bring chip production back to the U.S.
Trump Asserts Record-Setting Investment, Teases Tariffs
In a CNBC interview on Squawk Box, Trump said, "We have the biggest in the world… from Taiwan is coming over and spending 300 billion dollars in Arizona building the biggest plant in the world for chips and semiconductors."
He also said new tariffs targeting chips and semiconductors would be unveiled "within the next week or so," describing them as a separate category, intended to force domestic manufacturing.
“This is a separate class than the 15% tariffs on sort of everything,” he said.
Trump's $300 Billion TSMC Investment Statement Appears Negotiation Tactic
Renowned analyst Ming-Chi Kuo pushed back on Trump's statement, noting that TSMC has only officially committed to $165 billion in U.S. investments. Trump's earlier estimate was $200 billion.
"His further escalation to $300 billion seems to be laying the groundwork for upcoming semiconductor tariffs," Kuo said on X, formerly Twitter, suggesting Trump may be using high figures as part of a negotiation strategy.
He also dismissed market rumors that the U.S. pressured TSMC to take a 49% stake in Intel Corp INTC or commit another $400 billion, stating there is no evidence that TSMC has been involved in such talks.
At a National Republican Committee dinner in April, Trump credited his hardline tariff policies for driving major U.S. investments without relying on federal subsidies.
"TSMC, the biggest, most powerful chip maker in the world… they're spending $200 billion in Arizona building one of the biggest plants in the world, and that's without money," Trump said.
"All I did is say if you don't build your plant here, you're going to pay a big tax — 25%, maybe 50%, maybe 75%, maybe 100%."
TSMC CEO: AI Chip Demand Still Outpacing Supply
At TSMC's annual shareholder meeting in June, CEO CC Wei acknowledged that U.S. tariffs are creating indirect headwinds but reaffirmed that demand for AI chips remains "very strong and consistently outpacing supply."
Wei also denied rumors of TSMC planning new fabs in the UAE and confirmed the company complies with U.S. and Taiwanese export regulations.
He also said he informed Trump that building a $100 billion fab in the U.S. would "take time," pushing back on the president's expectations.
Price Action: TSMC shares declined 2.73% during regular trading and slipped a further 0.76% in pre-market hours, ending at $230.70, according to Benzinga Pro.
Benzinga's Edge Stock Rankings show that TSMC continues to demonstrate strong momentum across short, medium and long-term periods. However, despite this consistent momentum, the stock's overall growth score remains comparatively low. Additional performance insights are available here.
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