TSMC Engages with US on CHIPS Act Guidance Amid Worries of Subsidies
Taiwanese chipmaker TSMC has confirmed that it is in talks with the US government regarding its “guidance” for the CHIPS Act, a law intended to boost US semiconductor manufacturing.
Concerns have been raised over the criteria for subsidies, which includes sharing excess profit with the US government.
The application process itself could also expose confidential corporate strategy. South Korean President Yoon Suk Yeol has voiced similar concerns for companies like Samsung and SK Hynix.
TSMC is investing $40 billion in a new plant in Arizona, but details of expected subsidies for the plant have not been disclosed.
The subsidies are part of a $52 billion pool of research and manufacturing funds earmarked under the CHIPS Act. The US Department of Commerce has stated that it will protect confidential business information and expects the requirement to share excess profit to occur only when projects significantly exceed projected cash flow.