TSMC and Korean Semiconductor Factories Concerned Over American CHIPs Subsidy Conditions
On April 2nd, the Economic Daily News of Taiwan reported that the details of the American CHIPs subsidy were announced, and the chairman of TSMC, Mark Liu, stated that "some conditions cannot be accepted." Korean semiconductor factories also spoke out, calling the US "too much."
The report stated that TSMC's first-phase project in the US will produce 4-nanometer process chips, which are expected to start production as early as 2024, and the second-phase project is expected to begin producing 3-nanometer process chips in 2026. TSMC's investment in the US has increased significantly from the original $12 billion to $40 billion; Samsung has invested more than $25 billion to build a plant in Texas, and SK Hynix is also expected to invest $15 billion in the US. Since going to the US to produce chips is bound to increase operating costs, they all hope to reduce costs through subsidies.
However, the CHIPs not only requires technical cooperation, excess profit return, the employment of local US workers, the use of US-produced construction materials, and prohibits investment in semiconductor infrastructure in mainland China. In addition, the act also has "fence" clauses, which require semiconductor companies to submit sensitive information such as different types of chip production capacity and expected yields if they want to apply for subsidies.
On March 29th, SK Hynix's Vice Chairman and Co-CEO, Park Jung-ho, stated at the shareholders' meeting that although the company will build an assembly plant in the US as planned, the procedure for applying for subsidies under the CHIPs is too complicated. Although the company is seriously considering applying, it has not yet been decided. In addition, TSMC's chairman, Mark Liu, also rare expressed the hope that the chip act can be adjusted to avoid negative impact.
The Economic Daily News of Taiwan pointed out that the US is inviting companies to set up factories to rebuild the semiconductor industry, but many restrictions make it difficult for semiconductor companies to accept.
