US President Donald Trump has threatened Taiwan Semiconductor Manufacturing Company (TSMC) with a 100% tax if it does not set up production in the US, Reuters reports.
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Trump's position
“TSMC, I didn’t give them any money,” Trump said. “I just said, if you don’t build a plant here, you’re going to pay a big tax.” He criticized the previous Biden administration’s decision to give $6.6 billion in grants to TSMC’s U.S. unit to build a plant in Phoenix, Arizona. Trump said such companies don’t need government subsidies.
TSMC plans
The Taiwanese giant, which produces more than 90 percent of the world's most advanced chips, announced a massive investment in the U.S. in March — $100 billion to build five new factories — in a move intended to bolster the company's presence in America, but Trump is demanding more.
Shadow of Scandal
Reuters reported recently that TSMC could face a fine of $1 billion or more for violating U.S. export controls. It turned out that the company made chips for China's Sophgo that matched products from Huawei, a firm on the U.S. trade blacklist. The list prohibits shipments of goods made using American technology without special permission.