TSMC, the world’s top contract chipmaker based in Taiwan, has confirmed that it is in discussions with the U.S. government regarding the CHIPS ACT guidance.
The law aims to strengthen semiconductor production in the United States but has caused concern about the requirements for subsidies, including the sharing of excess profits with the U.S. government, Reuters news report said.
Some industry insiders worry that the application process may expose confidential corporate strategies. Similarly, South Korean President Yoon Suk Yeol has expressed concern that these criteria will negatively impact companies like Samsung Electronics and SK Hynix.
TSMC’s communication with the U.S. government pertains to the details of the subsidies, according to Taiwan Economy Minister Wang Mei-hua.
However, she hopes that these details will not hinder cooperation between the two sides or increase industry-related construction costs. The U.S. Commerce Department has reassured businesses that it will safeguard confidential information and will only require profit-sharing in cases where projects significantly exceed projected cash flow.
TSMC has invested $40 billion in a plant in Arizona, in support of the U.S. government’s efforts to expand chip-making domestically. However, the specifics of expected subsidies for the plant remain undisclosed. These subsidies would be drawn from a $52 billion pool of research and manufacturing funds allocated under the CHIPS Act.