Richard Saunders
In a recent CNBC interview, US Secretary of Commerce Howard Lutnick suggested that Taiwan Semiconductor Manufacturing Co (TSMC) might increase its investment in the United States to over $200 billion, potentially creating 30,000 new jobs in the process.
Lutnick’s comments came in the context of his criticism of the CHIPS Act, where he argued that the subsidies extended to semiconductor companies were excessively generous. He specifically referenced the $11 billion Intel received under the Biden administration, comparing it to a “shareholder Christmas card.” Lutnick noted that the funds allocated from the CHIPS Act were later converted into equity for Intel during the Trump administration.
Addressing the financial support provided to TSMC, Lutnick expressed his dissatisfaction with the $6 billion allocated to the company to incentivize a $60 billion investment in US manufacturing facilities. He mentioned that while TSMC’s initial commitment was $65 billion for three semiconductor plants in Arizona, he believes that this could rise to over $200 billion, although he offered no supporting evidence for his assertion.
TSMC has already commenced mass production at its first plant, with the construction of the other two plants underway at varying stages. Earlier this year, the company announced an additional $100 billion investment for three more semiconductor fabs, alongside two advanced packaging facilities and a research and development center, although these projects have not yet broken ground.
