TSMC Collaborates with Biden Administration on CHIPS Act Funding Guidance

On April 10th, 2023, Taiwan Semiconductor (NYSE:TSM) announced that it was collaborating with the Biden Administration to receive guidance on its application for funding under the U.S. CHIPS Act. The company stated that it was communicating with the U.S. government regarding the relevant subsidy legislation. Additionally, Taiwan’s Economy Minister Wang Mei-hua revealed that the country’s semiconductor industry was working to understand the legislation better to ensure that it did not affect industrial cooperation between Taiwan and the U.S. or result in additional costs for the industry.

There have been concerns in the broader semiconductor industry about the legislation’s rules, which include a controversial measure that allows profit-sharing for companies that exceed profitability projections. Last month, the U.S. Commerce Department requested revenue and profit projections from Taiwan Semiconductor (TSM) and other semiconductor firms seeking funding under the legislation.

Taiwan Semiconductor (TSM) is currently constructing a plant in Arizona as part of its efforts to diversify its manufacturing facilities. In December, President Biden toured the plant, accompanied by the CEOs of Apple (AAPL), Nvidia (NVDA), Micron Technology (MU), and Taiwan Semi (TSM) founder Morris Chang. Apple CEO Tim Cook had previously stated that the tech giant would start sourcing chips from the plant in 2024.

In February of 2023, Taiwan Semiconductor (TSM) announced that it would increase its investment in the Arizona chip factory by up to $3.5B. In December, the global foundry said it would triple its initial investment in the Arizona plant to $40B.

In April 2023, Taiwan Semiconductor (TSM) reported a more than 15% year-over-year decrease in revenue figures for March, 2023.

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