TSMC received a subsidy of 10.84 billion yuan from the Chinese and Japanese governments, a year-on-year increase of 5.74 times!

Source: Core Intelligence
    March 6 news, as countries around the world compete to sacrifice subsidy policies to develop local semiconductor manufacturing, TSMC has become the main target of the United States, Japan and Germany governments to invest in the local plant, which also makes TSMC received a large number of government subsidies. TSMC‘s 2023 government subsidies from the Chinese mainland and Japan have surged to NT $47.545 billion (about 10.84 billion yuan), up 5.74 times year-on-year.
    ccording to TSMC‘s financial report data, in 2023, TSMC‘s Japanese subsidiary JASM and China‘s Nanjing subsidiary obtained subsidies from the Japanese and mainland Chinese governments, mainly including real estate, plant and equipment acquisition costs, as well as some costs and expenses for the construction of plants and production operations.
    This should also be the main reason for TSMC‘s surge in government subsidies in 2023.
    According to the data, TSMC officially announced the construction of the first wafer fab in Kumamoto in November 2021, and introduced SONY Semiconductor Solutions and Denso as joint venture shareholders, with a total investment of $8.6 billion. In April 2022, the fab officially started, under the 24-hour day and night shift, the construction project was completed in 1 year and 8 months, and was officially inaugurated on February 24, 2024, and is expected to be officially mass-produced by the end of 2024. The planned capacity is 55,000 12-inch wafers per month, using 22/28nm to 12/16nm process technology. News shows that the Japanese government will subsidize TSMC Kumamoto Wafer Plant 476 billion yen, accounting for about 40% of the total investment.
    In addition, by the end of 2024, TSMC will also build a second fab in Kumamoto, and add Toyota as a shareholder, which is expected to be mass-produced by the end of 2027, when it will produce 6/7nm and 40nm processes.
    Japanese Prime Minister Fumio Kishida announced in a pre-recorded video at the opening ceremony of TSMC Kumamoto Wafer Plant 1 that the Japanese government has decided to support TSMC‘s construction of Kumamoto Wafer Plant 2. Minister of Economy, Trade and Industry Ken Saito said after the meeting that the Japanese government has approved a subsidy of 732 billion yen (about NT $153.8 billion) to support TSMC in the construction of Kumamoto Wafer Plant 2.
    As early as April 2021, TSMC announced that in order to meet the increase in structural demand and respond to the challenge of expanding the entire global chip supply from the shortage of automotive chips, it will invest $2.887 billion in capital expenditures to expand the 28nm mature process at the Nanjing plant, which is expected to start mass production in the second half of 2022 and achieve full production in mid-2023. Up to 40,000 tablets/month.
    At present, TSMC is also investing $40 billion in the United States to build an Arizona wafer fab, and plans to mass produce 4nm and 3nm. Recent rumors suggest that Intel is expected to receive about $10 billion in subsidies under the U.S. Chip Act. If Intel‘s investment and the amount of subsidies received are estimated, TSMC is also expected to receive nearly $10 billion in subsidies.
    In addition, TSMC has partnered with Infineon, NXP Semiconductors and Bosch to invest 10 billion euros in a semiconductor plant in the eastern German city of Dresden, and the German government will provide about 5 billion euros in subsidies.
    As a result, TSMC is expected to receive further government subsidies in the next few years.