2020, in an effort to please then-president Trump, TSMC announced an investment of $12 billion to build a factory in Arizona. Throughout Biden's entire term, this factory was under construction and only officially started production in the fourth quarter last year. Now that Trump is back, TSMC has to continue paying tribute. In March this year, they announced an additional investment of $100 billion to build five new factories and move the most advanced 2nm chip production line to the United States.

TSMC in Trump's sights

The Intel incident

From TSMC's perspective, watching the escalating Sino-US rivalry, as a private company, they felt they could not withstand the pressure from the US government, so they decided to spend money for safety. But a few days ago, after Trump pulled off the amazing feat of getting 10% shares of Intel without any cost, TSMC felt that something was wrong, and it seemed that Trump's knife was now at their neck.

According to Trump's statement, the US government acquired the equity of Intel without spending a penny. Previously, Biden signed the CHIPS and Science Act, which provided a large amount of subsidies to these chip manufacturers. Now, these subsidies are considered the money to buy the equity. US Commerce Secretary Rutenberg said that President Trump is too wise. We should control more American companies, make them obey the government, and in the future, the president's orders can be better executed. The government can also open up new sources of revenue to deal with the imminent economic crisis.

Intel will become a state-owned enterprise

As for whether this counts as the US government's "nationalization" of the chip industry, you don't need to care. The president has already said that Trump is correct in everything. From the White House's meaning, Intel is unlikely to be the first American company to have its shares taken away. Theoretically speaking, any company that received subsidies from the US government might be robbed in the same way.

TSMC's choice

As a model of investment attraction by the Trump administration, TSMC is almost certainly going to be hit by this blade. In TSMC's long-term plan to go to the US, there was originally a plan to jointly produce chips with Intel. They are closest to Trump's blade and can feel the chill. At that time, media analysis suggested that the US government would treat TSMC as a lifeline for Intel, first joint production, then forcing TSMC to hand over management rights, completing the occupation of the nest.

Now, Trump's method is straightforward and brutal, just take it directly. Over the past two years, TSMC has indeed received part of the US government's subsidies. Now, they are discussing whether to return these subsidies to ensure the company's independence.

TSMC probably won't escape this blade

This idea is simply too naive. With so many independent countries in the world, none can resist Trump's tariff baton. Even if TSMC is large, can they dare to confront Trump? Moreover, even if TSMC doesn't lose shares, they are now facing a tough problem. Trump has ordered that TSMC's chip production lines in the US cannot use equipment produced in mainland China.

Trump's scythe

This is part of Trump's "manufacturing re-shoring". He believes that to revitalize American manufacturing, all aspects must exclude Chinese influence. On this issue, TSMC is relatively well-prepared. Not using mainland Chinese equipment is just a bit more expensive, but that's nothing. However, now the problem arises: if Trump uses this as a reason to fine TSMC or even demand them to hand over shares, what should they do?

Some friends may say, why doesn't TSMC do self-censorship and ensure that every link of the production line uses American equipment? But first, Chinese industrial equipment is not something that can be replaced overnight. Second, when American related companies hear this news, they will definitely raise equipment prices to the sky.

Will TSMC still exist in a few years?

In the end, since the day TSMC built a factory in the US, they became meat on the cutting board. From Biden to Trump, their goal is to turn TSMC into "US-TSMC", swallowing this leader of the chip industry. Furthermore, if a war breaks out across the Taiwan Strait, the US also plans to destroy TSMC's headquarters on the island. What else can be said? Only wish that when TSMC is cut, they die quickly, without too much pain.

Original: https://www.toutiao.com/article/7542799348107625001/

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