Trump Administration Clarifies: No Equity for TSMC, Micron Despite U.S. Investments

The Trump administration has clarified its stance on acquiring equity in semiconductor manufacturing companies, stating that it does not intend to seek equity in companies like TSMC and Micron Technology, which are increasing their investments in the United States. This clarification comes as negotiations for acquiring equity in Intel continue, with the administration considering converting funds from the CHIPS Act into equity.

The official emphasized that companies which have not committed to increasing their investments in the U.S. may be required to provide equity to the government in exchange for subsidies. However, for companies like TSMC and Micron, which are already increasing their investments, the government does not plan to seek equity. This distinction is crucial as it indicates the administration's focus on encouraging investment rather than direct ownership.

TSMC has committed to investing 100 million dollars in the U.S., while Micron has pledged 2000 million dollars. The administration's decision not to seek equity in these companies is part of a broader strategy to attract and retain semiconductor manufacturing within the country. By providing subsidies without demanding equity, the government aims to create a more favorable environment for companies to invest and expand their operations.

This approach is expected to enhance the competitiveness of the U.S. semiconductor industry, which is crucial for technological advancements and national security. The administration's commitment to supporting the semiconductor industry through financial incentives rather than direct control is designed to encourage companies to invest in the U.S. without the burden of government ownership, thereby fostering a more dynamic and innovative industry.

The focus on investment and innovation is expected to drive growth and development in the semiconductor sector, benefiting both the companies and the broader economy. The administration's clarification addresses concerns raised by companies about potential government interference in their operations, emphasizing that the government's primary goal is to foster investment and innovation in the semiconductor industry.