TsmcSource: Taiwan Semiconductor Manufacturing Co., Ltd.

What you need to know

  • TSMC is hoping to build a semiconductor plant in Arizona.
  • It is doing so with financial help from the U.S. government.
  • TSMC has reportedly asked for a subsidy to cover the difference in operating costs between the U.S. and Taiwan, likely a massive sum.

TSMC has reportedly asked the U.S. government for a subsidy to cover the difference in operating costs in the U.S. compared to Taiwan.

News about the plant, planned for Arizona, broke in May, from that report:

TSMC today announced its intention to build and operate an advanced semiconductor fab in the United States with the mutual understanding and commitment to support from the U.S. federal government and the State of Arizona. This facility, which will be built in Arizona, will utilize TSMC's 5-nanometer technology for semiconductor wafer fabrication, have a 20,000 semiconductor wafer per month capacity, create over 1,600 high-tech professional jobs directly, and thousands of indirect jobs in the semiconductor ecosystem.

The latest report from Reuters reveals talks are ongoing regarding the subsidies the firm is to receive:

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW) is still in talks with the U.S. government about subsidies for its new plant in Arizona, chairman Mark Liu said on Tuesday.

"We hope federal and state governments could make up TSMC's running costs difference between the United States and Taiwan," Liu told reporters.

The new plant won't have business dealings directly with the military, but some of their clients might be suppliers to the military, he added.

The report highlights the issue of how expensive it is to bring manufacturing to the U.S. in comparison to the already established supply chains of Asia. Some Senators have also raised national security concerns about the move.