Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, is seeking up to $15 billion in subsidies from the U.S. government to build new chip fabrication plants, according to sources familiar with the matter. However, TSMC has reportedly objected to some of the conditions set forth by the U.S. government, including a requirement that it invest in facilities in the United States.
The move comes amid a global shortage of semiconductors, which has hit industries ranging from automobiles to consumer electronics. TSMC is one of the companies that has been affected by the shortage, which has been exacerbated by the Covid-19 pandemic.
TSMC’s request for subsidies was reportedly made in response to a proposal by the U.S. government to allocate $52 billion in funding for domestic semiconductor production as part of the “CHIPS for America Act.” TSMC’s planned investment in new facilities in Arizona is part of the government’s efforts to bring more semiconductor production to the United States.
However, sources say that TSMC has objected to some of the conditions attached to the government’s funding, including the requirement that it invest in facilities in the United States. TSMC reportedly wants more flexibility in how it uses the funding, including the ability to invest in facilities in Taiwan and other countries.
TSMC is a key supplier for many U.S. tech companies, including Apple, Qualcomm, and Nvidia, and its chips are used in a range of products, from smartphones to gaming consoles. The company is seen as a critical player in the global semiconductor industry, and its expansion plans are being closely watched by governments and industry analysts alike.
While TSMC has expressed interest in expanding its presence in the United States, the company has also faced pressure from the Taiwanese government to maintain its manufacturing base in Taiwan. The Taiwanese government has reportedly offered its own subsidies to TSMC to encourage the company to invest in new facilities in Taiwan.
The negotiations between TSMC and the U.S. government are ongoing, and it is unclear how the issue will be resolved. However, TSMC’s request for subsidies underscores the growing importance of the semiconductor industry to the global economy, and the fierce competition among countries to secure a foothold in this critical sector.