Minister of Economic Affairs J.W. Kuo (郭智輝) yesterday said he received information about a possible US government investment in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and an assessment of the possible effect on the firm requires further discussion.
If the US were to invest in TSMC, the plan would need to be reviewed by the Department of Investment Review, Kuo told reporters ahead of a hearing of the legislature’s Economics Committee.
Kuo’s remarks came after US Secretary of Commerce Howard Lutnick on Tuesday said that the US government is looking into the federal government taking equity stakes in computer chip manufacturers that receive CHIPS and Science Act funding to build factories in the country, Reuters reported, citing two sources.
Photo: CNA
Expanding on a plan to receive a 10 percent stake in Intel Corp in exchange for cash grants, a White House official and a person familiar with the situation said that Lutnick is exploring how the US can receive equity stakes in exchange for CHIPS Act funding for companies such as TSMC, Samsung Electronics Co and Micron Technology Inc, the report said.
The two sources said that US Secretary of the Treasury Scott Bessent is also involved in the CHIPS Act discussions, but that Lutnick is driving the process.
The commerce department oversees the US$52.7 billion CHIPS Act, which provides funding for research and grants for building chipmaking facilities in the US.
Photo: REUTERS
The commerce department late last year finalized subsidies of US$6.6 billion for TSMC, US$4.75 billion for Samsung and US$6.2 billion for Micron to produce semiconductors in the US.
TSMC yesterday declined to comment on the Reuters report.
The company’s shares dropped 4.22 percent in Taipei trading, after its American depositary receipts fell 3.61 percent overnight.
TSMC’s losses came as the TAIEX shed 728.06 points, or 2.99 percent, to close at 23,625.44.
As TSMC and GlobalWafers Co (環球晶圓) have received US funding, Taipei would continue talks with the two companies to determine whether Washington might seek equity stakes, Kuo said.
Responding to legislators’ concern that Washington might seek a board seat and attempt to interfere in TSMC’s operations after taking an equity stake in the company, Kuo said the move would require approval from the Department of Investment Review.
The minister likened Washington’s equity stake initiative to that adopted by Beijing, in which the Chinese government often holds a larger stake in companies than the private sector does.
The US, which has long opposed such a business model, now appears to accept the government taking stakes in companies, Kuo said, adding that Washington’s new approach warrants study.
Regarding tariffs, Kuo said he expects a final US rate for Taiwan to be settled within three months, although securing a more favorable rate might take up to six months.
Small and medium-sized enterprises are concerned about competition from Japanese and South Korean rivals, as well as potential exchange rate fluctuation effects, he said, adding that the government would strive to stabilize the New Taiwan dollar through the beginning of next year.
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