- Taiwan Semiconductor Manufacturing Company Ltd TSM said it is communicating with Washington about a U.S. Chips Act law that triggered concerns about subsidy criteria.
- Conditions for subsidies include sharing excess profit with the U.S. government, and industry sources have said the application process itself could reveal covert corporate strategy, Reuters reports.
- In March, South Korean President Yoon Suk Yeol said that U.S. Chips Act criteria fueled concerns amongst companies like Samsung Electronics Co Ltd SSNLF and SK Hynix Inc.
- Taiwan Economy Minister Wang Mei-hua told reporters on Monday that TSMC was explicitly talking to the U.S. about the details of the subsidies and expecting the relevant subsidy legislation not to affect industrial cooperation between the two sides and costs for industry-related construction.
- TSMC is investing $40 billion in a new plant in the western U.S. state of Arizona to boost the country's domestic chipmaking position.
- In March, the U.S. Department of Commerce sharted plans to protect confidential business information and expects that the requirement to share excess profit will only occur when projects significantly exceed projected cash flow.
- In March, TSMC Chair Mark Liu called on Taiwan to produce more equipment essential to advanced chipmaking, tapping the opportunities arising from the U.S. tech embargo on China.
- Liu added that the Taiwanese chip industry urged the government to offer more tax incentives for foreign equipment makers to set up local shops.
- Earlier in March, TSMC's retired founder Morris Chang flagged higher costs and reduction in the omnipresence of vital chips associated with U.S. technology sanctions on China.
- Price Action: TSM shares traded lower by 3.91% at $86.72 on the last check Monday.
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