TSMC gets NT$67.13 billion aid from U.S., Germany, Japan, and China

[Daniel Nenni]

Taipei, Aug. 19 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) secured NT$67.13 billion (US$2.23 billion) in subsidies from the governments in the United States, Germany, Japan and China in the first half of 2025.

Financial data compiled by TSMC showed the world's largest contract chipmaker received NT$35.15 billion in aid from the four governments in the first quarter of this year and NT$31.98 billion in the second.

Following the NT$75.16 billion in subsidies the company received in 2024, the latest financial aid boosted TSMC's subsidies from the four governments to an aggregate of NT$142.29 billion in 18 months, according to the chipmaker.

TSMC said the subsidies were used in purchases of property and equipment and factory construction, and used to meet operational expenses for its presence in the four markets under the company's global expansion plan.

TSMC said its subsidiaries -- TSMC Arizona Corp. in the U.S. state of Arizona, European Semiconductor Manufacturing Co. (ESMC) in Dresden of Germany, Japan Advanced Semiconductor Manufacturing, Inc. (JASM) in Kumamoto of Japan and TSMC Nanjing Co. in China -- had signed agreements with local governments, where the investments are, for the financial aid. In Arizona, TSMC is also able to apply for aid, representing 25 percent of certain investments in the state.

Under the agreements, TSMC will have to follow the schedules set to complete the construction and observe other terms in its investments, the chipmaker said.
In Nanjing, TSMC currently runs a 12-inch wafer fab.

In Arizona, TSMC is investing US$65 billion to build three advanced fabs with the first starting mass production in the fourth quarter of last year, using the sophisticated 4-nanometer process. Construction of the second fab was just completed and they are trying hard to begin commercial production soon, using the 3nm process.

TSMC has broken ground on the third fab in Arizona, aiming to use the 2nm process and A16 process, while the chipmaker has pledged to invest an additional US$100 billion over the next few years to build three additional fabs, two IC assembly plants and one research and development center.

In Kumamoto, the first fab has started mass production since the end of 2024. Construction of the second fab is expected to begin later this year, but it is up to the progress of infrastructure projects in the city, where many residents have complained a traffic congestion.

TSMC started to build a fab in Dresden in August 2024 and construction is scheduled to be completed in 2027 to cater to the European auto market and the industrial sector.

In a recent interview, Christian Koitzsch, president of ESMC, said the current work in Dresden focused on infrastructure such as constructing a water recycling system and building gas and chemical supply systems for future production.

TSMC gets NT$67.13 billion aid from U.S., Germany, Japan, China in H1 - Focus Taiwan

Taiwan Semiconductor Manufacturing Co. (TSMC) secured NT$67.13 billion (US$2.23 billion) in subsidies from the governments in the United States, Germany, Japan and China in the first half of 2025.

focustaiwan.tw

 

[Daniel Nenni]

I was asked today by a media outlet if a foundry could survive without government support. I said nope and mentioned that TSMC is the best example of that. I also told them that IDM Foundries deserve the same amount of respect from governments which is a big shift in thinking.

Intel and Micron could set a new standard where Government support is actual investments which Lip-Bu is well versed in. The American tax payer would appreciate some ROI on their tax dollars, without a doubt. It would be a dream to have a balanced budget after 25 years of deficit spending. What would that investment look like? Who better than Lip-Bu Tan to show us. He has made billions doing just that, investing in technology.

 

[Paul2]

TSMC's factories in the mainland also receive hefty subsidies btw

 

[benb]

I think, sadly, there are new rules, set by China. In capital intensive industries that China aims to dominate, purely private enterprises with much more limited borrowing capabilities are at a distinct disadvantage, and will definitely lose. In the context of assured losing, governments, here comes that phrase, “LEVEL THE PLAYING FIELD”. Every time you hear that phrase, you may translate it as socialism. Or capitalism with Chinese characteristics.

State owned enterprises is another term that fits. SEOs are a distinct compromise in the long run. The Chinese stock market has gone nowhere in part because of SEOs. They have priorities other than returning capital to shareholders. It’s obvious cause and effect.

It’s easy to predict Intel will be a poor investment, although maybe shorts are getting killed at the moment. Easy to predict MP Materials will be a poor investment. Thats the other side of this coin, sadly.

 

[user nl]

View attachment 3518

Taipei, Aug. 19 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) secured NT$67.13 billion (US$2.23 billion) in subsidies from the governments in the United States, Germany, Japan and China in the first half of 2025.

Financial data compiled by TSMC showed the world's largest contract chipmaker received NT$35.15 billion in aid from the four governments in the first quarter of this year and NT$31.98 billion in the second.

Following the NT$75.16 billion in subsidies the company received in 2024, the latest financial aid boosted TSMC's subsidies from the four governments to an aggregate of NT$142.29 billion in 18 months, according to the chipmaker.

TSMC said the subsidies were used in purchases of property and equipment and factory construction, and used to meet operational expenses for its presence in the four markets under the company's global expansion plan.

TSMC said its subsidiaries -- TSMC Arizona Corp. in the U.S. state of Arizona, European Semiconductor Manufacturing Co. (ESMC) in Dresden of Germany, Japan Advanced Semiconductor Manufacturing, Inc. (JASM) in Kumamoto of Japan and TSMC Nanjing Co. in China -- had signed agreements with local governments, where the investments are, for the financial aid. In Arizona, TSMC is also able to apply for aid, representing 25 percent of certain investments in the state.

Intel and Micron could set a new standard where Government support is actual investments which Lip-Bu is well versed in.

Interesting that TSMC is getting tax payers money from USA, Europe, Japan and China, and TSMC current share holders do not see their equity diluted.

Intel has lost tax payers support everywhere (for the foreseeable future in Europe, Japan and China) and now Intel shareholders see their equity diluted by at least some 12% it seems (10% USG and 2% Softbank). But I guess better than 100 Billion US$ getting wiped out in a kind of bankruptcy protection.......

Regarding the future of IDMs, why would US tax payers support Intel Product division via share buying?

US is flooded (they always say) by the best and most extensive capital markets. It seems it is clear that US-capital markets do not have enough trust in INTEL 3.0. Otherwise, LBT should be able to get his friends put up some 30 B US$ for the coming 2-3 years to stabilize Intel.

There seems to be still a lot of doubt on the feasibility of Intel as IDM, where they seem to process only some 10% of 12 inch equivalent wafers relative to TSMC.

If you ratio the 10 B$ / 1 M Wafers processed by IFS, then every Intel wafer gets 10000 US$ tax payers money subsidy.

If you ratio the say 5 B$ / 10 M Wafers processed by TSMC, then every TSMC wafer gets 500 US$ tax payers money from USA, Europe, Japan and China.

If we assume a A16 wafer price at TSMC being some 45 k US$ then global tax payers pay about 500/45000 = 1 % subsidy / wafer.
If we assume an INTEL 18A wafer price at IFS is the same, then the US tax payer pays 10000/45000 = 22% subsidy /wafer.

Wonder how this IDM INTEL 3.0 US-tax-payer-subsidy model is sustainable in the mid-term run, say 3-5 years?

https://www.hwcooling.net/en/tsmcs-1-6nm-chips-will-be-unprecedentedly-expensive/#:~:text=The price for the next,increase by the same proportion.

 

[Daniel Nenni]

Interesting that TSMC is getting tax payers money from USA, Europe, Japan and China, and TSMC current share holders do not see their equity diluted.

Intel has lost tax payers support everywhere (for the foreseeable future in Europe, Japan and China) and now Intel shareholders see their equity diluted by at least some 12% it seems (10% USG and 2% Softbank). But I guess better than 100 Billion US$ getting wiped out in a kind of bankruptcy protection.......

Regarding the future of IDMs, why would US tax payers support Intel Product division via share buying?

US is flooded (they always say) by the best and most extensive capital markets. It seems it is clear that US-capital markets do not have enough trust in INTEL 3.0. Otherwise, LBT should be able to get his friends put up some 30 B US$ for the coming 2-3 years to stabilize Intel.

There seems to be still a lot of doubt on the feasibility of Intel as IDM, where they seem to process only some 10% of 12 inch equivalent wafers relative to TSMC.

If you ratio the 10 B$ / 1 M Wafers processed by IFS, then every Intel wafer gets 10000 US$ tax payers money subsidy.

If you ratio the say 5 B$ / 10 M Wafers processed by TSMC, then every TSMC wafer gets 500 US$ tax payers money from USA, Europe, Japan and China.

If we assume a A16 wafer price at TSMC being some 45 k US$ then global tax payers pay about 500/45000 = 1 % subsidy / wafer.
If we assume an INTEL 18A wafer price at IFS is the same, then the US tax payer pays 10000/45000 = 22% subsidy /wafer.

Wonder how this IDM INTEL 3.0 US-tax-payer-subsidy model is sustainable in the mid-term run, say 3-5 years?

https://www.hwcooling.net/en/tsmcs-1-6nm-chips-will-be-unprecedentedly-expensive/#:~:text=The price for the next,increase by the same proportion.

I'm looking into this but yes TSMC needs competition for multiple reasons, price being one of them. Hard to get a good read on wafer pricing however but it is certainly going up:

 

[user nl]

I'm looking into this but yes TSMC needs competition for multiple reasons, price being one of them. Hard to get a good read on pricing however but they are certainly going up:

View attachment 3530

Trust, flexibility to scale production-orders / output, economy of open-innovation at global scale, flexibility to choose the optimum node per chip let, and the strong demand by leading-edge fabless customers of TSMC to reduce the power-per-transistor for HPC and some mobile applications, seem to justify the wafer-costs charged by TSMC.

Nothing to do with monopoly. If you want TSMC to invest every year 30-40% of their total revenue in CAPEX, they can only provide these huge investments (with only 1% global taxpayers subsidy) by providing these tremendous values to their customers, and the leading-edge nodes cost some extra!

But luckily TSMCs top-management is smart enough to only build and fill new fabs when they have sufficient demand to run them economically.

INTEL seems to have built fabs (or shells) for political reasons (OHIO??), and there apparently was no-one around PG to tell him that he was crazy impatient! It reflects something very troubling about INTEL's top-management and INTEL's board, perhaps they should all be let go, like they did with some 40 thousand other INTEL employees in 2024 and 2025.

And the top-management and board should give ALL their large compensation packages back to the US tax-payers!!

Bernie Sanders, claw that back from INTEL before you sign the USG 10%-investment document!

https://www.chetanpatil.in/the-key-factors-in-semiconductor-node-selection/

 

[MKWVentures]

People can always choose other companies foundry.... Including Intel and Samsung. And yet they do not. Seems like they are happy with they value they get from TSMC.
TSMC has competition. They are just not good enough.


Subsidies don't really determine what you will do, it determines where you will do it. Other countries have always been better than the US on subsidies, Finally the US caught up and it will be great for the economy. If you agree to a subsidy and pull it (I haven't ever seen that in the past in other countries), then that is a red flag working in that country.

 

[siliconbruh999]

Subsidies don't really determine what you will do, it determines where you will do it. Other countries have always been better than the US on subsidies, Finally the US caught up and it will be great for the economy. If you agree to a subsidy and pull it (I haven't ever seen that in the past in other countries), then that is a red flag working in that country.

what happens if US does this with TSMC they can't pull out and knowing TRUMP he will do it

 

[user nl]

Subsidies don't really determine what you will do, it determines where you will do it. Other countries have always been better than the US on subsidies, Finally the US caught up and it will be great for the economy. If you agree to a subsidy and pull it (I haven't ever seen that in the past in other countries), then that is a red flag working in that country.

The two T particles, Trust and Trump, seem to strictly obey Pauli's exclusion principle, never in the same state at the same position!

Pauli had a certain reputation with (science) people, somewhat similar like POTUS has with the whole human world (except perhaps that special MAGA species):
https://phalpern.medium.com/a-quantum-of-insults-23150f27bbb3


https://en.wikipedia.org/wiki/Pauli_exclusion_principle

Pauli during a lecture in Copenhagen (1929).[1] Wolfgang Pauli formulated the Pauli exclusion principle.

 

[hist78]

I'm looking into this but yes TSMC needs competition for multiple reasons, price being one of them. Hard to get a good read on wafer pricing however but it is certainly going up:

View attachment 3530

View attachment 3531

How do we judge if TSMC’s pricing is reasonable or justifiable?

I can compare a pound of Gala apples I bought and ate a year ago with today’s, both in price and in quality because they are the same Gala apples.

But we can’t compare a semiconductor wafer and its chips across different years easily. Because each generation comes with different manufacturing technology, different cost structures, different PPA, and different levels of market acceptance and impact.

 

[MKWVentures]

what happens if US does this with TSMC they can't pull out and knowing TRUMP he will do it

TSMC Arizona is the best thing to happen to US Silicon in 20 years. Even trump knows that. Lets see what happens.

BTW: I talked to a number of people from Asia and Europe over the last couple weeks. People are trying to work with Trump and they are also looking at how to work without the US. Once these plans are complete, they will be used in negotiations. I expect TACO behavior before that so I am not worried.

 

[user nl]

See also this analysis about Europe's and Asean's response so far (1 July 2025) here:

https://europrospects.eu/eu-and-ase...-2-0-divergent-paths-in-a-shared-trade-storm/

However, each bloc has lessons to offer the other. ASEAN could benefit from the EU’s institutional strength and strategic autonomy frameworks, particularly in dispute resolution, centralized trade policy, and collective crisis coordination. Conversely, the EU might draw inspiration from ASEAN’s agile and low-cost responses, as well as its ability to capitalize on global supply chain realignments with fewer bureaucratic delays. ASEAN’s decentralized model has enabled member states to act swiftly on national priorities, allowing quicker adjustments to investor demand, trade flows, and production relocation.

 

[user nl]

TSMC Arizona is the best thing to happen to US Silicon in 20 years. Even trump knows that. Lets see what happens.

Yep, pretty amazing what CC Wei's team is doing there building a fantastic GigaFab; that's really a very different contribution to the global society than Softbank's "playing with global society's financial rent". Many complements to TSMC:

And this is Intel's Chandler campus, quite a different layout, no idea what their wafer capacity is/will be; there are currently some 700 people being fired from the Chandler campus, which is only some 50 miles from TSMC's-Arizona GigaFab; strange times in some ways:

https://www.manufacturingdive.com/n...cross-California-Oregon-Arizona-Texas/752756/

 

[MKWVentures]

I think that is the old Intel Campus ..... I worked at that place 30 years ago .... Look for Ocatillo (Price Rd)

I was lucky enough to visit both TSMC and Intel OC campus last year

 

[user nl]

Thanks, here the Ocotillo Campus, just 9 miles south of Chandler:

 

[tomatoma]

TSMC Arizona is the best thing to happen to US Silicon in 20 years. Even trump knows that. Lets see what happens.

BTW: I talked to a number of people from Asia and Europe over the last couple weeks. People are trying to work with Trump and they are also looking at how to work without the US. Once these plans are complete, they will be used in negotiations. I expect TACO behavior before that so I am not worried.

The semiconductor industry is evolving without the United States

 

[tomatoma]

How do we judge if TSMC’s pricing is reasonable or justifiable?

I can compare a pound of Gala apples I bought and ate a year ago with today’s, both in price and in quality because they are the same Gala apples.

But we can’t compare a semiconductor wafer and its chips across different years easily. Because each generation comes with different manufacturing technology, different cost structures, different PPA, and different levels of market acceptance and impact.

There is no need for semiconductor companies other than TSMC

 

[tomatoma]

People can always choose other companies foundry.... Including Intel and Samsung. And yet they do not. Seems like they are happy with they value they get from TSMC.
TSMC has competition. They are just not good enough.


Subsidies don't really determine what you will do, it determines where you will do it. Other countries have always been better than the US on subsidies, Finally the US caught up and it will be great for the economy. If you agree to a subsidy and pull it (I haven't ever seen that in the past in other countries), then that is a red flag working in that country.

Investing outside of TSMC is a waste of money…

 

[user nl]

Trump administration is not eyeing equity in TSMC, Micron, official says

WASHINGTON (Reuters) -The Trump administration is considering taking equity stakes in companies getting funds from the 2022 CHIPS Act but has no similar plans for bigger firms boosting U.S. investments, such as TSMC and Micron, a White House official told Reuters. The official confirmed a Wall...

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