TSMC chairman and CEO C.C. Wei said the US government will not seek a stake in the company, addressing concerns raised by recent media reports.

He told reporters in Taipei that the Trump administration had announced it would not take equity in TSMC.

A company spokesperson also said TSMC has never discussed US government ownership.

Earlier this week, Reuters reported the US might seek shares in chipmakers receiving CHIPS Act funding, but a US official later told the Wall Street Journal there were no such plans for TSMC or Micron.

TSMC shares fell 4.2% in Taipei after the Reuters report.

TSMC, based in Taiwan, is the world’s largest contract chipmaker and is expanding in the US.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ U.S. subsidies model contrasts sharply with China’s state ownership approach

The equity controversy highlights fundamental differences in how the U.S. and China approach strategic technology control.

While China uses state-owned enterprises to maintain government influence in critical sectors, with SOEs playing crucial roles in defense and energy despite comprising only 15% of Fortune Global 500 companies2, the U.S. has chosen a different path through the CHIPS Act.

The $52.7 billion in federal subsidies allocated under the CHIPS Act provides grants and tax incentives rather than requiring government ownership stakes3.

This approach reflects America’s preference for market-based solutions while maintaining strategic oversight, contrasting with China’s more direct state control model where the government retains intervention options in critical sectors2.

The U.S. strategy aims to achieve national security objectives through financial incentives rather than ownership, allowing private companies to maintain independence while serving national interests.

2️⃣ TSMC’s foundry dominance makes government influence attempts inevitable

TSMC’s overwhelming market position explains why the mere suggestion of U.S. government equity sparked such strong market reactions and diplomatic clarification.

The company controls 64.9% of the global semiconductor foundry market4, making it the dominant player in manufacturing the world’s most advanced chips for companies like Apple and Nvidia.

This market dominance, combined with TSMC’s $165 billion investment commitment in Arizona facilities1, positions the company as perhaps the most strategically important private entity in the global semiconductor supply chain.

The 4.22% stock price drop following initial equity rumors1 demonstrates how investors view any potential government interference as a material risk to TSMC’s operational independence.

Given that over $630 billion in semiconductor supply chain investments have been announced in the U.S. since 20205, TSMC’s role as the anchor tenant for America’s chip manufacturing renaissance makes it a natural target for government influence attempts, even when ultimately rejected.

Recent TSMC developments

……