TSMC Dispels Reports Suggesting Jensen Huang's Visit Pushed for a Revenue-Sharing Deal with Trump Administration
In early August, rumours swirled about an informal deal between the Trump administration and semiconductor giants AMD and Nvidia, allowing them to sell their chips in China in exchange for profit-sharing. However, these claims have been largely debunked.
One of the key figures in these discussions was Nvidia CEO Jensen Huang, who visited TSMC two weeks ago. Contrary to some reports, Huang's visit was not related to the revenue sharing deal with the Trump administration. Instead, it was a belated birthday event for TSMC founder Morris Chang, as reported by FocusTaiwan.
After the birthday celebrations, Huang, along with other company suites, had dinner with TSMC CEO C.C. Wei. During this dinner, the two engaged in lighthearted banter over who would pay for dinner, with Huang agreeing to Wei's wafer pricing in response.
Reports also suggested that Huang was there to deliver a message from President Trump regarding revenue sharing. However, TSMC has denied these claims, stating that they were not part of any such arrangement.
TSMC, the world's largest contract chipmaker, is based in Taiwan, falling outside of U.S. jurisdiction. The Trump administration's potential move to acquire stakes in American companies was sometimes by converting grants into equity, but TSMC was not a target for such a move.
TSMC CEO C.C. Wei also clarified that the U.S. will not take shares in TSMC. Furthermore, there are no credible or specific sources indicating any informal deal by the Trump administration in August 2021 involving companies transferring 15% of their profits to the government.
It's important to note that TSMC has smooth and positive communication with the White House, as reiterated by the company yesterday. The visit by Jensen Huang to TSMC was a testament to this positive relationship, rather than a secretive deal.
In conclusion, the visit by Jensen Huang to TSMC was a celebration of Morris Chang's birthday, and there is no evidence to support the claims of a revenue sharing deal between TSMC and the Trump administration.
