Chipmaker Taiwan Semiconductor Manufacturing Co (TSMC) is seeking up to $15 billion from the United States in chip factory subsidies but pushing back on some of the conditions necessary to acquire them, the Wall Street Journal reported on Wednesday,
TSMC is concerned about rules that could require it to share profits from the factories and provide detailed information about operations, WSJ reported, citing people familiar with the matter.
“Some of the conditions are unacceptable,” TSMC Chairman Mark Liu was quoted as saying in the report.
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TSMC did not immediately respond to a Reuters request for comment.
Earlier this month the Taiwanese chipmaker had said it was communicating with Washington about its “guidance” about the CHIPS Act – a law designed to boost US semiconductor manufacturing.
The subsidies in question would come from a $52 billion pool of research and manufacturing funds earmarked under the act.
In March, the US Department of Commerce said it will protect confidential business information and expects that the requirement to share excess profit will only occur when projects significantly exceed projected cash flow.
$15 billion subsidies
The world’s largest contract chipmaker announced in December plans to more than triple its planned investment to $40 billion at two new chip plants in Arizona.
Citing unnamed sources, the WSJ reported that TSMC was looking to ask for grants worth up to $7 billion for the two factories.
Additionally, the chipmaker is expecting tax credits of up to $8 billion under the CHIPS Act, the report added.
Korean chip makers Samsung and SK Hynix are also uneasy about sharing operational information with the US, according to the report.
They are especially concerned about laws that would limit their investment in high-end semiconductor manufacturing in China if they accept US subsidies, WSJ said.
- Reuters, with additional editing by Vishakha Saxena
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