TSMC seeking up to $15 billion from federal government for Arizona chip plants
Apr 23, 2023, 5:00 AM
Taiwan Semiconductor Manufacturing Co. is seeking up to $15 billion in tax credits and grants from the federal government to support its Arizona semiconductor plants amid concerns about subsidy criteria, the Wall Street Journal reported Wednesday.
TSMC expects to receive $7 billion to $8 billion in tax credits under the CHIPS Act, in addition to $6 billion to $7 billion in grants for its Arizona plants, according to the WSJ, citing people familiar with the matter.
TSMC is investing more than $40 billion in building two fabs in north Phoenix, marking one of the largest foreign direct investments in the state and U.S. history. It plans to employ more than 4,500 workers at its Arizona campus where it will produce 3-and-4 nanometer chips, the Phoenix Business Journal previously reported.
TSMC has expressed concern about CHIPS Act subsidy criteria, including rules that would require the company to share some profits with the U.S. government if returns exceed projections. The company is concerned that economics of its Arizona project may not pencil out if profits are capped by the government, according to the WSJ.