"The Biden Administration Ends Semiconductor Law Negotiations with TSMC Before Trump's inauguration"

Ahead of Trump's inauguration, it has been pointed out that the Biden administration is rushing to conclude negotiations with companies eligible for semiconductor law support.

Taiwan's TSMC, the world's largest foundry company, and U.S.-based foundry company Global Poundless have concluded binding contract negotiations for billions of dollars in grants and loans to U.S. plants, Bloomberg reported.

However, it is said that it is unclear when the contract will be officially signed.

Earlier, the U.S. Department of Commerce announced in April that it would provide TSMC with $6.6 billion in subsidies for the establishment of a semiconductor plant in Arizona and $5 billion in low-interest loans under the Semiconductor Act.

The semiconductor law enacted by the Biden administration in 2022 provides a total of $52.7 billion over five years to semiconductor companies investing in the United States, including $39 billion in semiconductor production subsidies and $13.2 billion in R&D subsidies.

Major global semiconductor companies such as South Korea's Samsung Electronics, SK Hynix, and TSMC, as well as U.S. companies, will receive subsidies in exchange for building factories in the U.S.

However, during the presidential election, Trump called the semiconductor law "really bad" and has argued that he should impose very high tariffs on semiconductors so that foreign semiconductor companies can come to the United States and set up semiconductor factories for free.