Taiwan Semiconductor Manufacturing Co. (TSMC) (TSM) climbed over 1.5% in pre-market trade on Wednesday despite former President Donald Trump calling for an end to the Chips Act – the bipartisan $52 billion semiconductor subsidy program that has driven over $400 billion in investments from companies.

In a prime-time address on Tuesday, Trump urged lawmakers to repeal the 2022 law and redirect the funds to debt reduction.

“Your Chips Act is a horrible, horrible thing,” Trump said, imploring U.S. House Speaker Mike Johnson to eliminate the legislation and use “whatever is left over” to pay down debt or for “any other reason.”

TSMC is among 20 companies that have secured binding agreements under the Chips Act, accounting for more than 85% of the manufacturing incentives allocated through the program. 

TSMC is the biggest grant holder under the Chips Act, second only to Intel Corp. (INTC), which is entitled to $7.85 billion in funding. 

Intel’s stock edged higher by 0.5% in pre-market trade. 

Under President Joe Biden, the Chips Act earmarked $39 billion in direct grants – along with loans and a 25% tax credit – to reinvigorate domestic semiconductor production. 

An additional $11 billion was set aside for research and development. The initiative aimed to reduce U.S. reliance on Asian semiconductor supply chains.

Other recipients of the grant include Micron Technology Inc. (MU), whose shares gained nearly 2% in pre-market trade on Wednesday. GlobalFoundaries Inc. (GFS) shares were up 1.28%, while Microchip Technology Inc. (MCHP) saw gains of 0.74%. 

Trump did not clarify whether he would attempt to claw back already disbursed funds, halt pending commitments, or block future subsidies. 

TSMC initially unveiled a $12 billion U.S. plant during Trump’s first term and later expanded the project under Biden’s administration to include three factories. 

The company reached an agreement with the Biden administration to receive $6.6 billion in Chips Act grants and $5 billion in loans. 

However, on Monday, Trump credited his tariff threats for TSMC’s increased investment in the U.S., which now totals $165 billion, including a previously announced $100 billion commitment on top of an earlier $65 billion plan.

“We’re giving them no money,” Trump said, claiming that the company’s investment was motivated purely by the desire to avoid tariffs.

TSMC retail sentiment and message volume on March 5 as of 7:05 a.m. ET | Source: Stocktwits

Retail sentiment on Stocktwits around TSMC’s stock surged into the ‘extremely bullish’ zone from ‘bullish’ the previous day, accompanied by ‘extremely high’ levels of chatter.

One user described the current price swings as a strong risk-reward opportunity. 

Another pointed out that TSMC is among the top semiconductor firms receiving the largest grant allocations.

If pre-market gains hold, TSM’s shares are on track to reclaim their 200-day simple moving average (SMA) after slipping below it on Feb. 27.

While the stock has climbed over 28% in the past year, it remains down 8.5% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Read also: ASML Stock Gains Pre-Market As 2025 Forecast Stands Firm Despite Tariff Threat To China Sales – Retail Remains Cautious