The Strategist

WSJ: TSMC is not satisfied with terms of U.S. subsidies

04/20/2023 - 07:21

Taiwan Semiconductor Manufacturing Co. (TSMC), the largest semiconductor manufacturer in the world, is asking for $15 billion in U.S. subsidies, but the conditions are unsatisfactory because the company does not intend to give the U.S. authorities a portion of its profits and reveal sensitive information, according to the Wall Street Journal.

李 季霖 via flickr
李 季霖 via flickr
The newspaper reported, quoting sources, that "the largest contract chip maker in the world is insisting on some of the conditions Washington imposes on subsidies for the construction of chip plants." The corporation plans to obtain "up to $15 billion in U.S. government funds," it continues.

The newspaper claims that under U.S. law, some of the subsidies must be returned if the chip manufacturer receives more than $150 million in direct financing and its revenues exceed expectations. According to the publication, this is most likely the time when "tough negotiations" between the corporation and U.S. authorities will start.

Government requests for extensive access to TSMC's books and activities are yet another hurdle, the WSJ notes, particularly in a sector where businesses frequently conceal basic information like as who their clients are.