TSMC has been hoping for large subsidies from the United States for years to reduce the cost of building factories. However, the U.S. has failed to deliver on its promises and has set draconian conditions, making TSMC's hopes of receiving subsidies slim. However, recent news seems to indicate that TSMC's subsidy program has been implemented. But things are not as simple as they seem.
TSMC's biggest hope for building a factory in the United States is to receive a large subsidy from the United States. Without the promise of these subsidies, TSMC would not have been able to risk soaring costs to build a factory in the United States. After all, compared with Taiwan, the United States lacks a complete industrial chain and a large number of talents, and the cost of building a factory is 50% higher. As a result, building a factory in the U.S. is considered by many to be an almost impossible business decision. However, if the United States can provide large subsidies, these problems may be solved. The U.S. has enacted a $52 billion policyChipsAs long as TSMC can get these subsidies, most of the problems can be solved with money. However, the United States has been reluctant to come up with this money, which makes people wonder if they really want to support TSMC.
According to the survey data, TSMC is facing huge cost challenges in overseas expansion, with costs soaring by 25 to 4 times, or even 7 to 8 years to become profitable. Originally, TSMC planned to complete two in the United States by 2026ChipsThe plant was put into operation and achieved annual revenue of $10 billion. However, at present, it seems that TSMC is getting farther and farther away from this goal.
However, the latest edition of the American ".ChipsThe bill has an important news that the United States will go to the top, including TSMCChipsCompanies provide billions of dollars in subsidies. This is undoubtedly good news, but things are not as simple as they seem.
The U.S. subsidy to TSMC is not free and unconditional, and they have set many strict application conditions. For example, TSMC needs to share 75% of excess profits with the United States, needs to provide childcare facilities for employees' infants and toddlers, and cannot expand production in the mainland for ten yearsSemiconductorsWait a minute. Because of these conditions, TSMC suspended the application for the U.S. subsidy and postponed the start of production of the U.S. factory. This is also the reason why TSMC has been slow to move forward with the application for subsidies in the United States. However, even if the US media announces the news that TSMC will receive subsidies, this can only indicate that TSMC has made concessions on certain conditions in exchange for billions of dollars in subsidies from the United States. Of course, these are only analyses of the possibilities of the development of things, and have not been officially confirmed.
It has become a fact that TSMC is becoming more and more dependent on the United States. However, it is impossible to know whether this means that the United States will take certain actions against TSMC in the future. If TSMC regrets its decision to build a factory in the United States because of this, it will be a huge blow. Therefore, in any case, TSMC needs to respond to this situation cautiously in order to protect its interests to the greatest extent.
GloballySemiconductorsAgainst the backdrop of increasing competition in the industry, TSMC is eager to obtain U.S. subsidies to enhance its competitiveness in the United States. However, the United States has been delaying the payment of subsidies and has added a series of stringent application conditions. While the latest news suggests that TSMC may receive a large subsidy, this is only one of the possibilities. Things are not going to be simple, and it is still unknown whether the United States is willing to make substantial concessions. TSMC is currently facing the dilemma of either accepting U.S. terms in exchange for subsidies or continuing to bear the high cost of building factories. In any case, TSMC needs to be cautious in dealing with this situation, protect its interests, and avoid regretted results.