TSM - Taiwan Semiconductor working with Biden Administration on Chips Act 'guidance'

2023-04-10 07:57:02 ET

Taiwan Semiconductor ( NYSE: TSM ) said on Monday that it was working with the Biden Administration on "guidance" on how to proceed with its application for U.S. CHIPs Act funding.

"We can confirm that we are communicating with the U.S. government about the CHIPS ACT guidance," the company said in a statement to Reuters .

In addition, Taiwan Economy Minister Wang Mei-hua said the country and its semiconductor industry were working to better understand the legislation.

"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," she said, according to the news outlet.

There has been concern amongst the broader semiconductor industry about the rules, as the $52B CHIPs Act has a controversial measure. A provision in the legislation includes profit-sharing measures for companies that "significantly exceed the projections," with the projections used to determine the level of profitability.

Last month, the U.S. Commerce Department asked Taiwan Semiconductor ( TSM ) and other semiconductor companies that hope to receive funding from the legislation for revenue and profit projections in an effort to receive the funds.

Taiwan Semiconductor ( TSM ) is currently building a plant in Arizona in an effort to diversify its manufacturing facilities.

In December, President Biden toured the plant, joined by the CEOs of Apple ( AAPL ), Nvidia ( NVDA ), Micron Technology ( MU ) and Taiwan Semi ( TSM ) founder Morris Chang.

Apple ( AAPL ) CEO Tim Cook said previously the tech giant, which already contracts from Taiwan Semiconductor ( TSM ), would start sourcing chips from the plant in 2024.

Taiwan Semiconductor ( TSM ) said in February it would raise the investment it is making at its Arizona chip factory by up to $3.5B.

In December, the global foundry said it would more than triple its original investment in the Arizona plant to $40B.

Separately on Monday, Taiwan Semiconductor ( TSM ) said March revenue figures declined more than 15% year-over-year .

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