The US market is eagerly anticipating more information on Trump’s position on the “Chips and Science Act”, following his criticisms of its costs.
He argued that tariffs could have provided a cost-effective and effective solution for chip production onshore.
Wendell Huang, the head of finance for Taiwan Semiconductor Mfg. Co. Ltd., (NYSE: TSM), remains confident that the Trump Administration will continue to fund his company.
TSM’s stock price has risen by more than 90 percent in the past 12 months.
Trump is vocal about his opposition to the CHIPS Act
Huang’s optimistic outlook is important, especially because at one time, the president-elect even accused Taiwanese of stealing US chips.
Joe Biden, the 46 th president of the United States, pledged approximately $6.6 billion in support of TSMC’s broader goal of chip manufacturing onshore in 2024.
It is expected that the funding will help Taiwanese company set up three manufacturing facilities in Arizona.
Taiwan Semiconductor received $1.5 Billion under the CHIPS Act, which helped it put into production its Arizona facility in the last quarter of 2018.
According to Wendell Huang, CFO of the New Government, funding for the second facility will be continued to flow under the new administration. The project is expected to become operational by 2028.
TSMC has begun talks with the US Government
TSMC reported a record quarter profit thanks to a strong demand for artificial intelligence chips.
C.C. Wei assured investors that his company has “very open and honest communication” with both the current and future government.
The CHIPS Act is supported by both Democrats and Republicans in Washington, so experts also agree with the optimism of the company.
Taiwan Semiconductor did not, however, attend Trump’s Inauguration, in keeping with its tradition to keep a low-profile.
Dividend yields are currently 1.17%, making the shares of this multinational contract manufacturing and design company even more appealing to income investors.
Is TSM still attractive in 2025?
Wall Street analysts are still incredibly bullish about TSM, despite the stock’s sharp rise since 2024. This is primarily due to the fact that it lies at the center of the AI revolution.
Myron Yi, in a recent article, called Taiwan Semiconductor “the only game in town” for AI chips, as Nvidia, and hyperscalers, depend on them for their most advanced artificial intelligence products.
Shares of TSMC could be worth buying in 2025, as the management of the company sees a growth in AI of 40% annually over the next 5 years.
The Taiwanese behemoth is also protected from the US’s continued restrictions on advanced chip exports.
The post Trump 2.0: Could TSMC be forced to cut US funding? This post may change as new information unfolds
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