U.S. may want stake in TSMC, but Taiwan's interests come first: Source

Taipei, Aug. 22 (CNA) The interests of Taiwan and its companies are the government's top priority, a Cabinet source said Thursday in response to reports that Washington may seek a stake in Taiwan Semiconductor Manufacturing Co. (TSMC) in exchange for CHIPS Act funding.

Reuters reported Wednesday that U.S. Commerce Secretary Howard Lutnick said the U.S. government is considering taking equity stakes in chipmakers that receive CHIPS Act subsidies.

Lutnick told CNBC that the administration is in talks with Intel about a 10 percent stake, and may pursue similar arrangements with other companies.

According to two anonymous sources, the firms under consideration could include Micron, Samsung and TSMC, the world's largest advanced chipmaker.

The Cabinet source, who requested anonymity, said the U.S. is Taiwan's most important strategic partner but that the competitiveness of Taiwan's semiconductor and electronics sectors is predicated on government policies and cooperation with the global high-tech industry.

"It did not come out of nowhere, and it will not be gone all of a sudden," the source said.

Economics Minister Kuo Jyh-huei (郭智輝) said Wednesday that TSMC is a private company and that Taiwan's negotiating team has not raised the issue with him.

If the U.S. does seek to invest in TSMC, Kuo said the Department of Investment Review would review the matter, noting that an expert assessment of its potential impact would be necessary.

Meanwhile, Pegatron Corp. Chairman Tung Tzu-hsien (童子賢) cited former U.S. President Ronald Reagan's words: "In this present crisis, government is not the solution to our problem; government is the problem."

Calling on the Trump administration to "take your hands off," Tung argued that "TSMC, Intel and Samsung will become more competitive if they can be put to the market's test [without interference]."

The Wall Street Journal reported Friday that a U.S. official downplayed the possible inclusion of TSMC and Micron as companies in which the U.S. government would want a stake, citing their rising investment in America.

Instead, the request for equity stakes would target companies that are not contributing more to the country, the official said.