- TSMC received TWD67.13bn ($2.23bn) in subsidies in H1 2025.
- Support came from the US, Germany, Japan, and China for global expansion.
- Funds used for land, equipment, new fabs, and operational expenses.
Taiwan Semiconductor Manufacturing Co. (TSMC) obtained TWD67.13bn ($2.23bn) in governmental support from the United States, Germany, Japan, and China in the first half of 2025, as stated by company data, CNA reports.
The chip manufacturer disclosed TWD35.15bn in assistance during the first quarter and TWD31.98bn in the second. With the inclusion of the TWD75.16bn allocated in 2024, the total subsidies from the four governments have amounted to TWD142.29bn over 18 months.
TSMC clarified that the financing has facilitated land acquisitions, investment in equipment, the building of new factories, and operational expenses throughout its worldwide growth. Local branches in every market, such as TSMC Arizona Corp., European Semiconductor Manufacturing Co. (ESMC) in Dresden, Japan Advanced Semiconductor Manufacturing (JASM) in Kumamoto, and TSMC Nanjing Co., have finalized agreements with local governments to secure the assistance. In Arizona, the firm is also qualified for subsidies that cover 25% of specific investments.
The contracts mandate TSMC to follow established construction timelines and meet additional investment commitments. In Nanjing, the firm is currently running a 12-inch wafer manufacturing facility.
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In the United States, TSMC has pledged $65 billion for three advanced fabrication plants. The first started manufacturing chips using a 4-nanometre process in late 2024, while the second intended for 3nm technology, has recently finished construction and is getting ready for commercial production. Work has already started on a third location designated for 2nm and A16 operations. Additionally, the company has committed another $100bn for additional fabs, assembly facilities, and a research and development center.
In Japan, the initial Kumamoto plant began mass production at the end of 2024, and a second facility is anticipated to start later this year. In Germany, TSMC initiated construction of its Dresden facility in August 2024, aiming for completion by 2027 to support the automotive and industrial sectors.