Donald Trump Demanded that TSMC Pay a 100% Tax if it Fails to Build its Plant in the US

At the Republican National Congressional Committee event, the current United States President – Donald Trump criticizing on Former President – Joe Biden’s administration revealed that he demanded that TSMC will have to pay a tax of up to 100% if it does not build its manufacturing plant in the US.

Here’s more about it.

Trump Asks TSMC 100% Tax?

During Joe Biden’s tenure as the US President, TSMC was granted with USD 6.6 billion for building a semi-conductor manufacturing plant in Phoenix, Arizona. Criticizing this action that was done, Donald Trump stated that he offered no money to TSMC – which he addressed as a ‘great company… biggest chip company in the world…’ and instead told that if the company doesn’t build its plant in the country, a tax of up to 100% will have to be paid. He also claimed that chip companies do not need the money (from the government). Reportedly, TSMC has declined to comment on this statement made by the US President.

In related news, the chip maker has already announced at the White House that it will be making a USD 100 billion fresh investment in the US, and will be building five more additional chip manufacturing plants over the coming years. To note, the brand is also going to face a USD 1 billion penalty due to a US export control investigation which had found out that a TSMC chip was used inside a Huawei AI processor.

Speaking more, Donald Trump’s announcement on increasing import tariffs has brought a significant downturn in the US stock market. This could also be a reason for the recent drop of TSMC stock price, however the company’s stocks have been under performing for a year (-26.29%), dropping 15.50% in the last five days. Today too, the stocks are again down by another 3.80%.