TSMC Announces Last Year's Subsidy Amounts for Factories in Mainland China and Japan

TSMC has been actively setting up factories overseas in recent years and has received significant subsidies from the host countries/regions. TSMC's financial reports show that in 2023, the company received subsidies totaling 47.545 billion New Taiwan Dollars (approximately 10.87 billion Chinese Yuan) from mainland China and Japan, marking a 5.74-fold increase from the previous year. There is also potential for additional subsidies from the Japanese government, as well as new subsidies from the governments of the United States and Germany.

TSMC noted that the subsidies provided by the Japanese and mainland Chinese authorities are primarily for offsetting the costs associated with acquiring real estate, constructing buildings, and purchasing equipment, including subsidies for the construction of factories and operational expenses.

Additionally, TSMC's delayed factory in Arizona, United States, is expected to enter mass production in 2025, with the possibility of receiving subsidies from the U.S. government for factory construction. Industry insiders believe that substantial subsidies from the U.S. government could encourage TSMC to enhance its commitment to building new factories.

However, the cost of constructing a semiconductor fab and related equipment can reach around 10 billion U.S. dollars, and even more for advanced process facilities. Thus, subsidies from various governments only serve to reduce costs, while the ongoing operational expenses and taxes represent significant challenges for TSMC's future international expansion.