TSMC Secures $16.03B Subsidies in H1 2025

According to TSMC's financial report, the company received NT$67.128 billion (about RMB 16.03 billion) in government subsidies from the United States, Germany, Japan, and mainland China during the first half of 2025, bringing its total subsidies over the past year and a half to NT$142.292 billion (about RMB 33.97 billion). According to the data, TSMC secured NT$35.149 billion in subsidies in the first quarter of 2025 and NT$31.979 billion in the second quarter, which together accounted for the NT$67.128 billion in the first half. According to the report, when combined with the NT$75.164 billion it obtained in 2024, TSMC's subsidies over the last 18 months reached NT$142.292 billion.

According to TSMC, its subsidiaries in the U.S. (TSMC Arizona), Japan (JASM), Europe (ESMC), and mainland China (TSMC Nanjing) each signed subsidy agreements with local governments, which included conditions related to construction schedules and other requirements. According to the agreement, TSMC Arizona is eligible to apply for investment subsidies of up to 25% for qualifying projects. According to the company, the subsidies are mainly used to offset costs related to property, facilities, equipment purchases, plant construction, and operational expenses.

According to TSMC, its first Arizona fab began 4nm mass production in the fourth quarter of 2024, while the second fab, now completed, is set to produce 3nm chips and is moving quickly toward volume production. According to the company, the third fab has already broken ground and will manufacture using TSMC's 2nm and A16 processes. According to TSMC’s investment plan, the company will spend US$165 billion in Arizona to build six advanced fabs, two advanced packaging plants, and one R&D center.

According to the company, its first fab in Kumamoto, Japan, began production at the end of 2024, and construction of a second specialty fab is scheduled to start later this year, depending on local infrastructure readiness. According to TSMC, its Dresden fab in Germany broke ground in August 2024, and ESMC's president recently stated that the current focus is on building essential infrastructure such as water recycling systems and the supply of gases and chemicals. According to the plan, this fab is expected to begin mass production in 2027 to serve Europe's automotive and industrial sectors.