US Government Denies Plans for Stake in TSMC Amid Market Jitters

Taiwan Semiconductor Manufacturing Company's (TSMC) CEO C.C. Wei has confirmed that the United States government will not pursue ownership in the prominent chipmaker. This follows reports suggesting such intentions, which were quickly refuted by Wei and a TSMC spokesperson. The initial claims, made in a Reuters article, had relied on unnamed sources alleging the US government was considering equity stakes in tech firms like TSMC benefiting from federal funds to establish manufacturing facilities in the US.

In a further clarification, a US official informed The Wall Street Journal that there were no plans to impose equity requirements on companies such as TSMC and Micron. Despite the assurances, the speculative report led to a 4.22 percent drop in TSMC's stock in Taipei, reflecting market unease over possible government intervention.

Meanwhile, TSMC continues its expansive investment in the United States, committing USD 65 billion to develop three advanced semiconductor fabrication facilities in Arizona. One of these facilities commenced commercial production in late 2024. Plans for an additional USD 100 billion investment in the state, encompassing three more fabs, two IC assembly plants, and a research and development center, underscore TSMC's strategic expansion in the US market.

(With inputs from agencies.)