Taiwan Semiconductor Manufacturing Co. (TSMC) has accelerated its global expansion with substantial financial support. Over the past 18 months, TSMC has received NT$142.3 billion (about US$4.7 billion) in subsidies from four countries: the United States, Germany, Japan, and China. These funds aim to boost the company’s overseas projects and enhance its manufacturing capabilities worldwide.
Notably, TSMC secured NT$67.1 billion in subsidies in just the first half of this year, according to the latest financial reports. The money covers various costs, including property, plant, equipment, construction, and operational expenses at its overseas facilities. This significant financial backing is a crucial part of TSMC global expansion efforts.
TSMC’s overseas subsidiaries have all signed agreements with local governments to secure these subsidies. These include TSMC Arizona in the US, ESMC in Germany, JASM in Japan, and TSMC Nanjing in China. Each contract outlines specific construction timelines and subsidy conditions. For example, in Arizona, the company qualifies for subsidies covering up to 25% of its eligible investments.
The Arizona project remains TSMC’s largest international endeavor. Its first fab started producing 4-nanometer chips late last year. Meanwhile, a second fab for 3-nanometer chip production has finished construction and is preparing to ramp up mass output. Furthermore, TSMC is currently building a third fab focused on 2-nanometer and A16 processes.
In Japan, TSMC launched mass production at its Kumamoto fab at the end of last year. The company plans to start building a second fab this year. This new facility will focus on mature processes, pending local infrastructure readiness.
TSMC’s expansion in Germany also continues steadily. The company broke ground on its Dresden fab in August last year. It plans to start operations at this facility in 2027. These developments further demonstrate TSMC global expansion across multiple regions.
In conclusion, TSMC’s global expansion strategy is progressing rapidly, supported by billions in subsidies. These investments in cutting-edge fabs will help the company maintain its leadership in semiconductor manufacturing worldwide.
