Apple supplier TSMC in talks with U.S. about CHIPS Act manufacturing subsidies

Amid concerns that compliance could expose the company’s strategic plans Apple supplier TSMC is in talks with the U.S. government about the criteria for subsidies under the CHIPS Act.

The CHIPS Act, which was enacted by Congress on a bipartisan basis last year, provides $52 billion in funds for increased manufacturing of semiconductors in the U.S., in addition to funding other research.

Eric Revell for FOXBusiness:

Taiwan Economy Minister Wang Mei-hua said Monday that TSMC is talking to the U.S. government about the requirements for subsidies. She said, “The Taiwan government and industry have a very close understanding [of what is going on] and hope that the details of the relevant subsidy legislation will not affect industrial cooperation between the two sides and costs for industry-related construction.”

The law requires companies that receive subsidies to share certain business information with the Commerce Department as part of a due-diligence process and participate in “upside sharing” with the U.S. government if profits substantially exceed forecasts, among other stipulations.

TSMC told Reuters in a statement, “We can confirm that we are communicating with the U.S. government about the CHIPS Act guidance.”

All funding awarded under the CHIPS Act will be disclosed by the government through a public database. The Commerce Department guidance on CHIPS Act funding indicates that the agency intends to protect the confidential information that businesses seeking CHIPS funding provide to the agency and its sub-agency, the National Institute of Standards and Technology (NIST).

MacDailyNews Take: It’s only prudent.

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