‘TSMC wants up to $15 billion in aid from US government for two fabs in Arizona’ – Computer – News

TSMC wants $15 billion in grants and tax credits from the U.S. government to build two factories in Arizona. However, the government will have several conditions on this support that are ‘unacceptable’ to TSMC.

U.S. The company hopes to receive between $7 and $8 billion in tax benefits through the CHIPS Act. writes The Wall Street Journal Based on the sources. In addition, the company wants $6 to $7 billion in subsidies. This money is needed because some construction costs in the US are many times higher than in Taiwan. Morris Chang, the founder of TSMC, said Arizona produces at least fifty percent more chips than Taiwan.

However, the US government was unwilling to provide aid without conditions. For example, chip companies that receive more than $150 million in subsidies must pay a portion of their profits to the government if the profits from the subsidies are higher than expected. TSMC says it is concerned about the success of Arizona chip factories if their profits are “constrained” by the condition. Additionally, it will be difficult to calculate the profitability of the two factories, according to sources. The US government says this condition can be waived in “exceptional circumstances”.

The second contentious condition is that the government wants detailed information about TSMC’s accounting and business operations. However, the chip manufacturer does not want to disclose this information, for example, about its customers and manufacturing techniques. This information is important for the US government to ensure that grants are used ‘as promised’.

It is unclear whether TSMC will need US support to build chip factories. A chip factory is already under construction and should be ready next year. The second chip factory should be ready for chip production in 2026. TSMC itself is investing about $40 billion in the construction of the two plants.