00:00Taiwanese chipmaker TSMC could soon have a powerful new stakeholder, the U.S. federal
00:05government. The Trump administration wants equity in companies that build factories in
00:10the U.S. with funding under the CHIPS Act. U.S. Commerce Secretary Howard Lutnick told
00:15CNBC this new policy turns what he calls a giveaway to corporate giants into something
00:20that benefits the United States.
00:22I mean, why in the world is the United States of America taking money and giving it to companies
00:27like TSMC, which is worth a trillion dollars? I mean, why would we give them money to come
00:33to America? Donald Trump understands how to do this. What he does is he says, if you don't
00:38build in America, you're going to pay a 100% tariff and then watch them come flying in.
00:46The U.S. Commerce Department decided to give TSMC over six billion U.S. dollars in subsidies
00:51at the end of last year. Now, though, in Taiwan, there are worries the Trump administration
00:56will strengthen its intervention in the semiconductor industry, a pillar of Taiwan's economy.
01:01TSMC has declined to comment, and the economy minister says he's still confirming what's
01:07happening.
01:07But Taiwan's stock market hasn't waited for confirmation. TSMC's stock dropped 66 U.S.
01:32cents at the start of trading Wednesday, and continued to slip, with share prices hitting
01:36a low of just under 38 U.S. dollars later in the day. It dragged the rest of the market
01:41down with it, with the main stock index falling over 600 points. Analysts have big questions
01:47about what U.S. government involvement in the industry will mean for TSMC.
01:51And it's not just TSMC. Other big industry players also face a U.S. attempt to gain some influence
02:15through equity. The questions now are whether this attempt will work, and how the companies
02:20involved will respond. Luffy Lee and John Van Trieste for Taiwan Plus.
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