trump's chips act revamp: will tsmc's $100 billion investment survive?
Washington, Tuesday, 8 April 2025.
president trump is shaking up the chips act. his administration is creating an ‘investment accelerator’ to cut red tape. this move could reduce chipmakers’ costs by 10%. a key question emerges: will trump’s policies jeopardize subsidies for intel and samsung? analysts suggest firms not focused on leading-edge tech or ai face the highest risk. tsmc’s massive $100 billion arizona investment hangs in the balance. without the accelerator, realizing this commitment within three years seems impossible, according to techinsights. the revamp aims for better returns and could heavily favor us companies.
trump’s focus on financial returns
Trump’s approach to the chips act emphasizes financial returns [2]. This contrasts with the biden administration’s focus on national security [2]. Jeff koch from semianalysis suggests minimal further subsidies, even if contractually obligated [1]. patrick moorhead of moor insights anticipates that american companies will maintain their funding levels, while foreign firms may experience cuts [1]. handel jones, an industry veteran, expects funding to target ai and incentives for us manufacturing [1].
potential impact on tsmc and samsung
Dan hutcheson from techinsights believes that grants to intel and samsung are at risk, particularly given their recent financial challenges [1]. koch notes that all companies risk losing subsidies, especially those outside leading-edge or ai sectors [1]. samsung’s prospects are further dimmed by its non-us origin, readily available tech alternatives, and delays in its texas project [2]. moorhead predicts trump will negotiate more favorable terms with tsmc and samsung [1].
tariffs and trade war implications
Trump’s policies include a preference for tariffs and tax credits to encourage onshoring [1]. on april 2, 2025, he announced reciprocal tariffs, potentially imposing a 10% base rate on all imported products [5]. while semiconductors are temporarily exempt, the eu is considering retaliatory measures targeting us tech giants [5]. a techinsights analyst warns that these tariffs will likely squeeze profit margins for tech companies [5]. the administration aims to level the playing field, but faces potential trade war escalations [1][5].
market reactions and expert opinions
Following trump’s statements, tsmc’s stock saw a nearly 3% increase in overnight trading [4]. conversely, apple’s stock once plummeted by 9.3%, wiping out approximately $311 billion in market capitalization after tariff announcements [5]. analysts are closely watching how these policy shifts will affect long-term investment strategies and supply chain resilience [1][5]. a meeting between tech ceos and the white house is scheduled for april 10, 2025, to discuss potential exemptions, with outcomes yet to be determined [5].