Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) secured NT$67.13 billion (US$2.23 billion) in subsidies from the governments in the United States, Germany, Japan, and China in the first half of 2025. Financial data compiled by TSMC showed the world’s largest contract chipmaker received NT$35.15 billion in aid from the four governments in the first quarter of this year and NT$31.98 billion in the second.
According to Focus Taiwan, following the NT$75.16 billion in subsidies the company received in 2024, the latest financial aid boosted TSMC’s subsidies from the four governments to an aggregate of NT$142.29 billion in 18 months, according to the chipmaker. TSMC said the subsidies were used in purchases of property and equipment, factory construction, and to meet operational expenses for its presence in the four markets under the company’s global expansion plan.
TSMC reported that its subsidiaries-TSMC Arizona Corp. in the U.S. state of Arizona, European Semiconductor Manufacturing Co. (ESMC) in Dresden, Germany, Japan Advanced Semiconductor Manufacturing, Inc. (JASM) in Kumamoto, Japan, and TSMC Nanjing Co. in China-had signed agreements with local governments for the financial aid. In Arizona, TSMC is also eligible to apply for aid, representing 25 percent of certain investments in the state.
Under these agreements, TSMC will adhere to schedules set for construction completion and comply with other terms of its investments. In Nanjing, TSMC currently operates a 12-inch wafer fab. In Arizona, TSMC is investing US$65 billion to build three advanced fabs, with the first having started mass production in the fourth quarter of last year using the sophisticated 4-nanometer process. Construction of the second fab was recently completed, with efforts underway to begin commercial production using the 3nm process.
TSMC has begun construction on a third fab in Arizona, aiming to utilize the 2nm process and A16 process. Additionally, the company has pledged to invest an extra US$100 billion over the next few years to build three additional fabs, two IC assembly plants, and one research and development center.
In Kumamoto, the first fab began mass production at the end of 2024, and construction of a second fab is slated to commence later this year, contingent upon the progress of infrastructure projects in the city, where traffic congestion has been a concern for residents.
In Dresden, TSMC began constructing a fab in August 2024, with completion scheduled for 2027 to support the European auto market and the industrial sector. In a recent interview, Christian Koitzsch, president of ESMC, noted that current efforts in Dresden are focused on infrastructure development, including a water recycling system and building gas and chemical supply systems for future production.