Taiwan says US officials have visited to discuss concerns about chip subsidies
Sign up now: Get insights on Asia's fast-moving developments
The criteria are worrying companies like Taiwan's TSMC .
PHOTO: REUTERS
Follow topic:
TAIPEI – The United States has sent officials to Taiwan to listen to concerns in the chip industry about the criteria for new US semiconductor subsidies, Taiwan Economy Minister Wang Mei-hua said on Friday.
The criteria are worrying companies like Samsung Electronics and SK Hynix, South Korean President Yoon Suk-yeol said on Thursday, a concern shared by the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC).
Conditions include sharing excess profit with the US government, and industry sources have said the application process itself could expose confidential corporate strategy.
Speaking to reporters in Taipei, Ms Wang said there was a “direct connection” between US subsidy rules and company investments and operating costs, though she added that the rules were still in a 60-day comment period.
“The US side has sent relevant officials to Taiwan to listen to the industry’s opinions, to collect their views,” she added, without giving details.
“Following on, if the industry needs the government to help communicate with the United States, the Economy Ministry will certainly assist with communication,” Ms Wang said.
“We hope these technical details do not let the industry feel like there is a rather large disparity with their cost plans.”
TSMC is investing US$40 billion (S$53.2 billion) in a new plant in the western US state of Arizona, supporting Washington’s plans for more chip-making at home.
Subsidies would come from a US$52 billion pool of research and manufacturing funds earmarked under the US’ so-called Chips Act,
The US Department of Commerce will protect confidential business information and expects that the requirement to share excess profit will occur only where projects significantly exceed projected cash flow, a Department of Commerce official said on Thursday, citing its notice for the funding. REUTERS
