Taiwan Semiconductor Manufacturing (TSMC) is pushing back against CHIPS Act rules amid plans to invest $40B in two manufacturing plants in Arizona.
TSMC, which is seeking up to $15B in CHIPS Act subsidies,
is opposed to rules mandating that companies receiving subsidies share
detailed information about their operations with U.S. regulators.
- TSMC also opposes a profit-sharing requirement for companies that receive Chips Act subsidies.
- Under
the rule, companies that receive more than $150M in direct funding must
share "cash flows or returns" with the government when they exceed an
agreed threshold.
- TSMC Chairman Mark Liu said some of these conditions could push chipmaking firms away from the U.S.
- Some South Korean chipmakers have also voiced their opposition to some CHIPS Act requirements.
- TSMC is the world's largest manufacturer of semiconductor chips, making ~90% of advanced chips globally.
- With a market capitalization of ~$550B, TSMC is the 11th most valuable company in the world.
