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.