Former US President Donald Trump has once again warned Taiwan Semiconductor Manufacturing Company (TSMC), reiterating his ‘US First’ policy. He said that if TSMC does not build its semiconductor plants in the US, then the company will be taxed up to 100%.
Trump was speaking at a program by the Republican National Congressal Committee on Tuesday. During this time he targeted the policies of the President Joe Biden fiercely, especially on a grant of that $ 6.6 billion (about ₹ 55,000 crore) which the Biden government has given to the American unit of TSMC.
🔴 Trump’s question: “Why such big companies need money?”
Trump said,
“These companies are already earning billions of dollars. There is no need to help them with the money of taxpayers.”
He made it clear that companies that will build in America will be entitled to tax exemption and government help. The rest of the companies will be charged heavy tax.
🔍 Why is TSMC so important?
TSMC is the world’s largest contract chip manufacturer. Its chips are used in mobile, artificial intelligence, computers and even defense equipment.
Due to the increasing technology conflict and global challenges of chip supply from the US, China, companies want to build chips in the US. As part of this strategy, the Biden government has given TSMC a help of $ 6.6 billion to set up a factory in Finix, Arizona.
But Trump considers it to be a “unnecessary subsidy”.
