TSMC Seeks $15 Billion from U.S., But Pushes Back on Restrictions
TSMC, which plans to invest $40 billion in its Arizona fab complex, is aiming to raise up to $15 billion under US CHIPS and Science Act. However, we believe the funding terms set by the US government are unacceptable and will discuss them with US authorities. The world’s largest foundry reportedly believes that its obligation to disclose fab details and share in surplus profits will discourage chip makers from building fabs in the United States. wall street journal.
TSMC Chairman Mark Liu said at a conference in Taiwan in late March that “some of the conditions are unacceptable and we seek to mitigate these negative impacts and are seeking consultation with the U.S. government.” will continue,” he said.
TSMC has already completed construction of Fab 21 Phase 1A in Arizona and is currently moving facilities with the goal of starting chip production in 2024. But the world’s largest semiconductor contract maker needs U.S. government support as fab costs rise and it needs to remain competitive with makers who plan to get subsidies such as Intel.
The U.S. Department of Commerce requires companies seeking subsidies to provide confidential information such as projected capacity, utilization rates, wafer yield, pricing, and profitability metrics such as cash flow. This data is necessary to enforce policies to confiscate excess profits, but it also reveals chip makers’ competitiveness and trade secrets. Although the Department of Commerce is committed to protecting these trade secrets, TSMC and other chip makers are aware that such sensitive information could be leaked to U.S. competitors and cause serious harm. I am concerned about
Another objection TSMC has in mind is profit sharing. TSMC is concerned that government restrictions could limit the profitability of its Arizona plant project, with WSJ sources familiar with the company’s discussions with the U.S. In addition, given the secretive nature of the industry, which includes confidential client information, TSMC is determined to ensure that the government has broad access to its records and operations. I am hesitant about my request.
TSMC isn’t the only company concerned about the US government’s requirements for companies applying for CHIPS and scientific grants. South Korean semiconductor makers are also unhappy with these requirements, believing they may lose more than they gain.