TSMC overseas expansion plans unchanged despite Trump criticism

Taipei, July 18 (CNA) The overseas expansion plans of Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, remain unchanged, despite U.S. Republican presidential candidate Donald Trump accusing Taiwan of taking 100 percent of the chip business from the United States.

Trump, who has seen his odds of winning the upcoming presidential election shorten in the wake of a recent assassination attempt, said Taiwan should pay the U.S. to defend it in an interview with Bloomberg Businessweek published Tuesday.

"I know the people very well and respect them greatly. They did take about 100 percent of our chip business. I think Taiwan should pay us for defense," Trump said.

Trump's comments raised concerns that Washington could cut or even cancel its subsidies for TSMC's US$65 billion investment to build three advanced wafer fabs in Arizona, if Trump returns to the White House.

The chipmaker has signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce for direct funding of up to US$6.6 billion under the CHIPS and Science Act.

In response, TSMC Chairman C. C. Wei (魏哲家) said at an investor conference that the company will continue to expand overseas with its ongoing projects in the U.S., Japan and Germany unchanged amid escalating geopolitical tensions.

After Trump spoke, TSMC shares lost 2.43 percent to close at NT$1,005.00 but came off a low of NT$986.00 Thursday after a 2.37 percent tumble on Wednesday.

Due to TSMC's heavy losses, the Taiex, the weighted index on the Taiwan Stock Exchange, shed 371.35 points, or 1.56 percent, at 23,398.47 Thursday.

Thursday's plunge pushed down TSMC's market capitalization by NT$648.3 billion in one trading session to NT$26.06 trillion.

In the same trading session, foreign institutional investors recorded net sales of about 35.13 million TSMC shares, the largest among stocks listed on the main board.

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