TSMC is continuing to complain about 'unacceptable' US chip plant terms
Apple's processor manufacturer TSMC is asking the US for $15 billion in aid to help it build plants in the country, but is arguing against the Biden Administration's conditions.
TSMC investing $40 billion in Arizona fabs
Taiwan's TSMC is nearing the opening of its Arizona plant, and the US wants it to build more, but there were already political and financial pressures. As the US does not recognize Taiwan as a separate nation, it has no tax agreement with the country -- so TSMC pays tax twice.
According to the Wall Street Journal, TSMC has now said that it is concerned about rules that the US requires it to follow regarding profit sharing and operational information.
"Some of the conditions are unacceptable," TSMC chair Mark Liu told attendees at an industry meeting, "and we aim to mitigate any negative impact from these and will continue discussions with the US government."
Liu also said that the current terms could dissuade chip makers from working with the US. In response, the Biden Administration has said that its rules are intended to protect American taxpayers and see that their money is used as stated.
It further says that, without specifying details, the US Commerce Department would only expect profit sharing if those profits greatly exceed projections. The Wall Street Journal further reports that the US says it would protect TSMC's confidential information.
In December 2022, TSMC announced that it was tripling its investment in Arizona to $40 billion, and would be opening a second plant there.
Between these two Arizona plants, unspecified sources told the Wall Street Journal that TSMC expects to get tax credits of between $7 billion and $8 billion, under the Chips Act. The sources say the company is also considering asking for a similar $6 billion to $7 billion in grants from the Commerce Department.
Previously, TSMC has questioned the US attempts to bolster local chip manufacturing, even saying the plans are "doomed to fail," although without fully specifying why. TSMC is said to believe that its dominance in the semiconductor market is a "silicon shield" that protects it as tensions continue between the US and China.
Those same political tensions reportedly caused investor Warren Buffett's Berkshire Hathway firm to sell almost all of its stock in TSMC.
Aside from politics, and adding to its litany of complaints about working in the US, TSMC engineers claim that Americans don't work hard enough.
Read on AppleInsider
TSMC investing $40 billion in Arizona fabs
Taiwan's TSMC is nearing the opening of its Arizona plant, and the US wants it to build more, but there were already political and financial pressures. As the US does not recognize Taiwan as a separate nation, it has no tax agreement with the country -- so TSMC pays tax twice.
According to the Wall Street Journal, TSMC has now said that it is concerned about rules that the US requires it to follow regarding profit sharing and operational information.
"Some of the conditions are unacceptable," TSMC chair Mark Liu told attendees at an industry meeting, "and we aim to mitigate any negative impact from these and will continue discussions with the US government."
Liu also said that the current terms could dissuade chip makers from working with the US. In response, the Biden Administration has said that its rules are intended to protect American taxpayers and see that their money is used as stated.
It further says that, without specifying details, the US Commerce Department would only expect profit sharing if those profits greatly exceed projections. The Wall Street Journal further reports that the US says it would protect TSMC's confidential information.
In December 2022, TSMC announced that it was tripling its investment in Arizona to $40 billion, and would be opening a second plant there.
Between these two Arizona plants, unspecified sources told the Wall Street Journal that TSMC expects to get tax credits of between $7 billion and $8 billion, under the Chips Act. The sources say the company is also considering asking for a similar $6 billion to $7 billion in grants from the Commerce Department.
Previously, TSMC has questioned the US attempts to bolster local chip manufacturing, even saying the plans are "doomed to fail," although without fully specifying why. TSMC is said to believe that its dominance in the semiconductor market is a "silicon shield" that protects it as tensions continue between the US and China.
Those same political tensions reportedly caused investor Warren Buffett's Berkshire Hathway firm to sell almost all of its stock in TSMC.
Aside from politics, and adding to its litany of complaints about working in the US, TSMC engineers claim that Americans don't work hard enough.
Read on AppleInsider
Comments
As far as their bi*ching about how Americans don’t work hard enough. We may not work as hard as you’d like but you see your employees as replaceable, disposable pieces that can be used up and thrown away. In the west we put a higher value on the welfare of our fellow citizens. Once again you knew this going in, so shut up or GTFO.
There is a possibility that could imply less new plants (as opposed to expansion of existing plants or hardware renewal).
I however have no sympathy for the whining jerks that run TSMC. They have tried to pull this s*** everywhere they have built plants. Sign a contract, then complain about the terms in order to get concessions after the fact. They may make great chips, but the management is horrible.
time . But I have to say, Democrats and Biden people are not very good at making deals and being pro business .
the Foxconn deal is falling through in Wisconsin with same issues under Democrat Governor .
These people have to understand, to lure a world leading company like Taiwan Semi, you have to give incentives.
They understand the rules. They just don't like following the rules.
The US has lost 2 generations of productive workers while blaming China and other "eastern" countries of "taking our jobs".
No, China and the other countries of doing the work Americans can no longer do. We no longer even have older workers who can mentor younger workers. And it's the US's fault -- no one else is to blame. The government didn't control the Corporations and let them rape the taxpayers for the c-suite sole benefit, leaving the US with little in the way of productive capacity. We've got a lot people getting rich off of money manipulation, but few doing anything useful.
There's no quick fix for this collapse. The US doesn't have the infrastructure to rebuild.
it is embarrassing how badly the west has treated Taiwan, all not to offend China.
While true (and those orders are likely delayed vs canceled) it is also about China, and other authoritarian governments, being restricted from purchase of advanced semiconductors manufactured in the West. That there is an ongoing slowdown in the global economy is exacerbating the slowdown in semiconductors.
https://www.taipeitimes.com/News/biz/archives/2022/09/08/2003784929
Of note, the West will continue bans on DUV and EUV machines, other various semiconductor manufacturing technologies, operating consumables, and software, and semiconductors themselves, with a goal to restrict China's access to advanced technology that are dual use, civilian and military.
That is prudent policy by the West.