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TSMC talking to US about CHIPS Act ‘guidance’ amid subsidy concerns

ANN/THE STAR – Taiwan chipmaker Taiwan Semiconductor manufacturing Co Ltd (TSMC) said yesterday it is communicating with Washington in the United States (US) about its “guidance” for a law designed to boost US semiconductor manufacturing that has sparked concerns about subsidy criteria.

Conditions for subsidies include sharing excess profit with the US government, and industry sources have said the application process itself could expose confidential corporate strategy.

“We can confirm that we are communicating with the US government about the CHIPS ACT guidance,” TSMC, the world’s leading contract chipmaker, said in a short e-mailed statement. South Korean President Yoon Suk-yeol also said last month that the criteria are worrying companies like Samsung Electronics Co Ltd and SK Hynix Inc.

TSMCis investing USD40 billion in a new plant in the western US state of Arizona, supporting Washington’s plans for more chip-making at home.

Details of expected subsidies for the plant have not been disclosed. The subsidies would come from a USD52 billion pool of research and manufacturing funds earmarked under the CHIPS Act.

The US Department of Commerce said last month it will protect confidential business information and expects that the requirement to share excess profit will only occur when projects significantly exceed projected cash flow.

TSMC’s logo in Tainan, Taiwan. PHOTO: THE STAR
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