The U.S. President has been outspoken regarding TSMC since the joint announcement with the company’s CEO about a $100 billion investment in chip manufacturing. This initiative aims to establish additional chip facilities in the U.S. However, reports from Taiwanese media indicate that TSMC has not yet submitted the necessary details to the Taiwanese government for approval of the investment package.

Despite this, the President expresses confidence in TSMC’s reliability and their commitment to the investment. In an interview with Time Magazine, the President praised his tariff strategy, claiming it encourages American and foreign companies with manufacturing operations abroad to relocate to the U.S. He specifically highlighted NVIDIA’s recent commitment to invest $500 billion in the U.S. over four years to develop AI data centers.

When discussing TSMC’s CEO, he was asked whether he found him trustworthy and if he believed funds would flow into the U.S. The President replied affirmatively, stating, “First of all, I think they’re trustworthy people. But more importantly, they have no choice, because they won’t be able to pay the tariffs if they don’t do it.”

Notably, although the President regards TSMC as trustworthy, he initially threatened the company with a 100 percent tax if it failed to expand its manufacturing in the U.S.

He remarked at a political event, “If you don’t build your plant here, you are going to pay a big tax. Twenty-five, maybe 50, maybe 75, maybe 100%.”

TSMC remains a significant player in the industry, having recently announced its new 1.4nm manufacturing process and plans to begin mass production of 2nm chips by the second half of 2025. Furthermore, reports have clarified that TSMC will not form a joint venture with Intel, putting an end to previous speculation.