Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on Saturday said that it has received a total of NT$62.5 billion (US$1.95 billion) in subsidies from China and Japan since 2022.
In the first half of this year, TSMC received NT$7.96 billion in subsidies from China and Japan after receiving about NT$47.55 billion last year and obtaining NT$7.05 billion in 2022, financial data compiled by the world’s largest contract chipmaker showed.
The company, which makes about 90 percent of the world’s high-end semiconductors, said the subsidies were used to finance its investments in Kumamoto, Japan, and Nanjing, China.
Photo: An Rong Xu, Bloomberg
TSMC owns a 12-inch wafer fab in Nanjing and officially opened a 12-inch fab on Feb. 24 in Kumamoto.
The chipmaker said it plans to build another advanced facility in Kumamoto, with operations scheduled to begin in 2027.
TSMC has also extended its reach to Germany and the US.
On Tuesday, the company broke ground on a 12-inch wafer fab in Dresden, Germany. European Commission President Ursula von der Leyen said the commission contributed 5 billion euros (US$5.6 billion) in state aid toward the project.
In the US, TSMC is building two advanced fabs in Arizona and plans to build a third fab there, with total investments expected to be more than US$65 billion.
TSMC has not received any subsidies from the US government yet, even though the US Department of Commerce announced in April that it had signed a non-binding preliminary memorandum of terms with TSMC for up to US$6.6 billion in direct funding.
As overseas investments would increase the chipmaker’s operating costs, TSMC said it would adopt flexible pricing strategies based on higher costs abroad to achieve a long-term goal of no less than a gross margin of 53 percent.
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