Recently adding a feather to its cap through the Dresden fab inauguration, TSMC disclosed receiving NT$62.5 billion in grants from China and Japan since 2022, which has aided its expansion projects in Europe and the US.
On Saturday, Taiwan Semiconductor Manufacturing Company (TSMC) revealed that it has received NT$62.5 billion (US$1.95 billion) in subsidies from China and Japan since 2022. According to financial data from the contract chip fabricator, this fund includes NT$7.96 billion in the first half of this year, following NT$47.55 billion last year and NT$7.05 billion in 2022
TSMC further stated that it has allocated these subsidies towards investments in Kumamoto, Japan, and Nanjing, China. The company operates a 12-inch wafer fab in Nanjing and inaugurated a similar facility in Kumamoto in February this year.
Additionally, the company is planning another advanced facility in Kumamoto, which is expected to begin operations in 2027.
Meanwhile, TSMC has expanded its operations to Germany and the US. The company recently inaugurated its 12-inch wafer fab in Dresden, Germany, with the European Commission providing 5 billion euros (US$5.6 billion) in state aid.
In the US, TSMC is building two advanced fabs in Arizona and intends to add a third, with a total investment projected to exceed US$65 billion.
To manage increased operating costs from overseas investments, TSMC plans to implement flexible pricing strategies to maintain a long-term gross margin of at least 53%.
However, despite its global expansion and production of around 90% of the world’s high-end semiconductors, TSMC has not yet received subsidies from the US government. The US Department of Commerce announced a non-binding preliminary agreement for up to US$6.6 billion in direct funding in April, but no funds have been granted yet.
