The Trump administration might decide to acquire a stake in all CHIPS Act beneficiaries, which would put TSMC in a challenging position when it comes to the firm's autonomy.
Samsung, Micron & TSMC Could Be Forced Into President Trump’s ‘Equity Model
For those unaware, the US government is looking to adopt a 'chip subsidy-for-equity' model, according to remarks made by Commerce Secretary Howard Lutnick. More specifically, the equity stakes will be taken in exchange for CHIPS Act grants, which means all the eligible firms under the government scheme will need to give a portion of their company to the Trump administration. This means that TSMC could come under pressure for an equity sell-out, which might prove to be a difficult move politically and financially.
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