US CHIPS and Science Bill May Benefit Intel at the Expense of Foreign Firms

The CHIPS and Science Bill is rumored to have multiple application conditions and protective rules, which may put pressure on foreign companies intending to apply for US subsidies by diluting profits or increasing costs. According to Taiwan's Economic Daily News, both TSMC and GlobalWafers, which are planning to establish factories in the United States, did not comment on the US measures.

It was previously rumored in the industry that Intel, due to its "landlord advantage," will receive half of the subsidies from the bill and become the biggest winner, while other non-US companies can only receive less subsidies. "The share buyback and profit-sharing terms may be difficult for foreign investors outside the United States to pass, and a foreign company is estimated to find it difficult to enjoy this right," said a chip industry insider.

The Semiconductor Industry Association (SIA) had previously voiced concerns about the policy's fair distribution and non-discrimination principles several times. SIA members called on the US Congress to ensure fair distribution and received support from hundreds of companies, including Apple, AMD, Nvidia, and TSMC.

It is reported that many large companies had already deployed in the United States before the bill was introduced. TSMC's new factory in Arizona, and Samsung's new factory in Texas, have already begun construction and expansion.

TSMC had previously stated at a press conference that the cost of manufacturing in the United States would be higher than in Taiwan, mainly due to construction costs being four to five times higher in the US than in Taiwan, including labor costs, license costs, occupational safety and health regulations costs, recent inflation costs, and personnel and learning curve costs, all of which contribute to higher initial costs for overseas wafer plants compared to Taiwan.

GlobalWafers is the world's third-largest semiconductor silicon wafer plant, and its new 12-inch factory in the United States is located near its existing factory in Sherman, Texas. It began construction at the end of last year and is expected to become a significant expansion plan for the silicon wafer plant that has been absent in the United States for more than 20 years. GlobalWafers also emphasized that the bill, together with local government incentives and strong support from local customers, were factors that led to the significant expansion plan of this new factory.