Trump Administration Wants Equity? TSMC Reportedly Considers "Returning $6.6 Billion Subsidy" to Reject Becoming "US-TSMC"—What Do US Officials Say?

The U.S. government has recently made a major shift in its semiconductor industry subsidy policy. According to The Wall Street Journal and multiple foreign media reports, the Trump administration is considering converting CHIPS Act (U.S. CHIPS and Science Act) subsidies into a 10% equity stake in Intel. If negotiations succeed, the government would become the largest shareholder of this U.S. semiconductor giant.

U.S. Secretary of Commerce Howard Lutnick confirmed that the government has begun negotiations with Intel on an equity swap and does not rule out similar approaches toward other companies in the future. This move aims to enhance the competitiveness of the U.S. chip industry and ensure that taxpayers' interests go beyond merely "handing out money" to directly participating in corporate decision-making and profit-sharing.

Expanded Investors Exempt! TSMC, Micron... Temporarily Safe
The U.S. government's plan to take an equity stake in Intel has drawn significant industry attention, especially from major chip manufacturers like TSMC, Micron, and Samsung. Notably, The Wall Street Journal reported that TSMC executives stated they "have never heavily relied on U.S. financial support" and have explicitly discussed potentially returning up to $6.6 billion in subsidies (for the Arizona plant construction) if the U.S. demands equity, demonstrating resistance to the U.S. government's equity plan.

Addressing industry concerns about the U.S. government's intention to forcefully take equity through CHIPS Act subsidies, a government official clarified on Thursday U.S. time that the Commerce Department has no intention of seeking equity in companies like TSMC or Micron, as these companies are continuously expanding their investment commitments in the U.S. The official stated that equity requirements primarily target subsidized companies that fail to increase their investment levels, aiming to urge them to invest more in the U.S.

The equity demand is part of the Trump administration's broader industrial strategy, leveraging government power to guide corporate behavior in line with the "America First" policy goal. Secretary Lutnick continues to pressure recipients of CHIPS Act subsidies to increase their total investment in the U.S., securing better terms for taxpayers.

"America First" Policy Sparks Controversy, May Face Legal Challenges
In addition to the equity strategy, Trump recently stated that companies investing more in the U.S. could be exempt from up to 100% of chip import tariffs. Simultaneously, the U.S. government has implemented punitive measures, such as taking a 15% cut from NVIDIA and AMD's sales to China.