trump's tsmc claim: $300 billion or $165 billion?

2025-08-06 tsmc

taipei, Wednesday, 6 August 2025.
former president trump’s recent claim that tsmc would invest $300 billion in the u.s. to build a wafer fab has stirred controversy. the figure was quickly revised to $165 billion. taiwan’s government faces scrutiny amid concerns about secrecy surrounding the deal. this discrepancy raises questions about the accuracy of information and potential implications for tsmc’s interests. the incident highlights the delicate balance between political announcements and corporate realities in the semiconductor industry. the claim caused tsmc’s stock to fall by 2.58%.

Investment discrepancy

The discrepancy between trump’s initial claim of $300 billion and tsmc’s confirmed $165 billion investment in the u.s. has caused concern [1][3]. kuomintang legislator hsu yu-chen highlighted a $135 billion difference between the two figures [1]. taiwan’s economy minister chih-hui kuo initially dismissed both trump’s $300 billion claim and a separate $400 billion figure related to tariff reductions as ‘false information’ [2]. kuo later apologized for his imprecise remarks, stating that he lacked full understanding of the context at the time [2].

Market reaction and analysis

the news of trump’s inflated investment figure and subsequent clarification impacted tsmc’s stock [3][8]. tsmc’s adr experienced an immediate sell-off, falling by 2.58% following trump’s statement [8]. semiconductor analyst lu hsing-chih expressed concern that tsmc’s corporate governance would be compromised if its capital expenditure decisions were dictated by political figures like trump [2]. the incident underscores the sensitivity of tsmc’s stock to geopolitical announcements and the perceived influence of political factors on its investment strategies [3][8].

Tariffs and trade negotiations

trump’s remarks about tsmc’s investment coincided with discussions about new tariffs on semiconductors and chips [4][5]. he indicated that these tariffs could be announced soon, with the goal of encouraging domestic manufacturing in the u.s. [4][5]. trump also announced a 20% tariff on some products exported from taiwan to the u.s. [1][3]. these trade measures add complexity to tsmc’s investment decisions and could impact the competitiveness of its u.s.-based operations [1][3][4].

Strategic implications for tsmc

tsmc has emphasized that its investment decisions are driven by long-term strategic considerations, including market demand, technological advancements, and government incentives [2]. a tsmc spokesperson stated that the arizona investment is a strategic decision based on multiple factors, not solely influenced by any individual [2]. despite political pressure and tariff concerns, tsmc’s arizona plant is expected to begin production in 2026, marking a significant step in expanding its global manufacturing footprint [2].

Bronnen

arizona fab tsmc investment