Taiwan Semiconductor Manufacturing Company (NYSE:TSM), the world’s largest contract chipmaker, remains optimistic about continued U.S. government funding under incoming President Donald Trump. CFO Wendell Huang expressed confidence in a recent CNBC interview, stating that funding will persist as the company achieves key construction and production milestones at its Arizona plants.
Key Highlights

Government Funding Progress:

TSMC has received $1.5 billion so far out of the $6.6 billion allocated under the CHIPS and Science Act.

The funding is expected to continue in phases as the company meets project goals.

Arizona Plant Expansion:

TSMC’s first fabrication plant in Arizona commenced production of advanced chips in Q4 2024.

The second Arizona facility is set for completion by 2028, bolstering domestic chip production.

The CHIPS Act and Its Impact
The CHIPS and Science Act, signed into law in 2022, allocated over $50 billion to boost the U.S. semiconductor industry and reduce reliance on foreign production. The act received bipartisan support, driven by:

AI and National Security Concerns: Increasing demand for AI-driven chip production.

Supply Chain Resilience: Efforts to counter China’s growing chipmaking capabilities.

Trump’s Stance on the CHIPS Act
Despite Trump’s criticism of the CHIPS Act’s financial burden and past accusations against Taiwan regarding the U.S. chip industry, he is expected to maintain the act due to bipartisan backing.
TSMC’s Role in the AI Boom
TSMC plays a crucial role in the global semiconductor supply chain, manufacturing advanced chips for industry giants like NVIDIA Corporation (NASDAQ:NVDA). The company’s record-breaking Q4 2024 profit highlights its significance amid surging AI-driven demand.
Market Implications
The continued funding under the CHIPS Act, coupled with TSMC’s strategic expansions, is likely to impact semiconductor stock valuations. Investors keen on monitoring TSMC’s growth and market performance can utilize tools like:

Balance Sheet Statements to track TSMC’s financial health.

Earnings Historical to analyze past earnings trends and forecast potential growth.

Conclusion
With bipartisan support for the CHIPS Act and TSMC’s strategic advancements in the U.S., the semiconductor giant is well-positioned to capitalize on the AI revolution and domestic chip demand. Investors should closely monitor developments in U.S. policy and TSMC’s financial performance for potential opportunities in the semiconductor space.