TSMC talking to US about CHIPS Act ‘guidance’ amid subsidy concerns

Taiwanese chipmaker TSMC (2330.TW) said on Monday it is communicating with Washington about its “guidance” for a law designed to boost U.S. semiconductor manufacturing that has sparked concerns about subsidy criteria.

Conditions for subsidies include sharing excess profit with the U.S. government, and industry sources have said the application process itself could expose confidential corporate strategy.

“We can confirm that we are communicating with the U.S. government about the CHIPS ACT guidance,” TSMC, the world’s leading contract chipmaker, said in a short emailed statement.

South Korean President Yoon Suk Yeol also said last month that the criteria are worrying companies like Samsung Electronics Co Ltd (005930.KS) and SK Hynix Inc (000660.KS).

Taiwan Economy Minister Wang Mei-hua told reporters on Monday that TSMC was specifically talking to the United States about the details of the subsidies.

“The Taiwan government and industry have a very close understanding (of what is going on) and hope that the details of the relevant subsidy legislation will not affect industrial cooperation between the two sides and costs for industry-related construction,” she said.

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