TSMC gets NT$67.13 billion aid from U.S., Germany, Japan, China in H1

Taipei, Aug. 19 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) secured NT$67.13 billion (US$2.23 billion) in subsidies from the governments in the United States, Germany, Japan and China in the first half of 2025.

Financial data compiled by TSMC showed the world's largest contract chipmaker received NT$35.15 billion in aid from the four governments in the first quarter of this year and NT$31.98 billion in the second.

Following the NT$75.16 billion in subsidies the company received in 2024, the latest financial aid boosted TSMC's subsidies from the four governments to an aggregate of NT$142.29 billion in 18 months, according to the chipmaker.

TSMC said the subsidies were used in purchases of property and equipment and factory construction, and used to meet operational expenses for its presence in the four markets under the company's global expansion plan.

TSMC said its subsidiaries -- TSMC Arizona Corp. in the U.S. state of Arizona, European Semiconductor Manufacturing Co. (ESMC) in Dresden of Germany, Japan Advanced Semiconductor Manufacturing, Inc. (JASM) in Kumamoto of Japan and TSMC Nanjing Co. in China -- had signed agreements with local governments, where the investments are, for the financial aid. In Arizona, TSMC is also able to apply for aid, representing 25 percent of certain investments in the state.

Under the agreements, TSMC will have to follow the schedules set to complete the construction and observe other terms in its investments, the chipmaker said.

In Nanjing, TSMC currently runs a 12-inch wafer fab.

In Arizona, TSMC is investing US$65 billion to build three advanced fabs with the first starting mass production in the fourth quarter of last year, using the sophisticated 4-nanometer process. Construction of the second fab was just completed and they are trying hard to begin commercial production soon, using the 3nm process.

TSMC has broken ground on the third fab in Arizona, aiming to use the 2nm process and A16 process, while the chipmaker has pledged to invest an additional US$100 billion over the next few years to build three additional fabs, two IC assembly plants and one research and development center.

In Kumamoto, the first fab has started mass production since the end of 2024. Construction of the second fab is expected to begin later this year, but it is up to the progress of infrastructure projects in the city, where many residents have complained a traffic congestion.

TSMC started to build a fab in Dresden in August 2024 and construction is scheduled to be completed in 2027 to cater to the European auto market and the industrial sector.

In a recent interview, Christian Koitzsch, president of ESMC, said the current work in Dresden focused on infrastructure such as constructing a water recycling system and building gas and chemical supply systems for future production.