TSMC seeks $15 billion from US but objects to certain conditions: Report

Taiwan Semiconductor Manufacturing Co (TSMC) Ltd is pushing back on some of the conditions the United States has attached to chip-factory subsidies, as it seeks up to $15 billion from the US government, the Wall Street Journal reported on Wednesday.

TSMC, which in December more than tripled its planned investment at its new Arizona plant to $40 billion, is concerned about rules that could require it to share profits from the factories and provide detailed information about operations, WSJ reported, citing people familiar with the matter.

TSMC did not immediately respond to a Reuters request for comment.

According to a Bloomberg report in December last year, TSMC will offer advanced 4-nanometer chips when its new $12-billion plant in Arizona opens in 2024, spurred by US customers including Apple Inc.

TSMC previously said it would make 20,000 wafers per month at the Arizona facility but the production may increase from those original plans, the report had said. Apple will use about a third of the output as production gets underway, it added.

The report said in addition to Apple, TSMC customers including Advanced Micro Devices Inc and Nvidia Corp have also asked TSMC to make more sophisticated chips at the Arizona plant.

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TSMC’s customers have asked the company to roll out its latest technologies simultaneously in the United States and Taiwan, the report added.Further, TSMC also began mass production of its most advanced chips in southern Taiwan in December and the company’s chairman said it would continue to expand capacity on the island.

The long-awaited mass production of chips with 3-nanometre technology comes as attention focuses on the world’s largest contract chipmaker’s investment plans at home and abroad. TSMC has a dominant position as a maker of advanced chips used in technology from cellphones to fighter jets.

“TSMC is maintaining its technology leadership while investing significantly in Taiwan, continuing to invest and prosper with the environment,” TSMC Chairman Mark Liu told a ceremony marking the production and capacity expansion in the southern city of Tainan.

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