Taiwan Semiconductor Manufacturing Co. is seeking clarity from the federal government on CHIPS Act guidance amid the company's concerns about subsidy criteria, Reuters reported on Monday.
Conditions of the subsidies include sharing excess profit with the U.S. government. In addition, the application process for CHIPS Act funding could expose confidential corporate strategy, Reuters reported, citing industry sources.
Taiwan Economy Minister Wang Mei-hua told reporters on Monday that TSMC is in discussions with the U.S. regarding conditions of the subsidies and that the company hopes the “relevant subsidy legislation will not affect industrial cooperation between the two sides and costs for industry-related construction,” Reuters reported.
The U.S. Commerce Department reportedly told Reuters that it will protect confidential business information and expects "upside sharing" to happen only in instances where projects significantly exceed projected cash flow.
