The US was trying to scam TSMC. So what happens next? Will TSMC still build its fab in the US?
this post was submitted on 25 Dec 2023
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What? No the US have stipulations to get the promised subsidies that TSMC is just outright ignoring or refusing. Tit for tat.
TSMC is getting ready to pull the plug on the US fab, since US gov has not given any of the promised subsidies.
I know it is in the title but can this really be it for the CHIPS act? This is bad performance even by the US standard. I’m not sympathetic I just didn’t think the failure will be so decisive and so early.
So what’s next for CHIPS and fabrication in the US?
I don't think TSMC has much interest in building fabs in US because it's one card they hold over the US at the moment.
They don't say why the US hasn't paid out yet, and the way it's stated in this article and the linked article inside implies that it's a failing on the government side.
With the significant delays and attempts to bring in off shore labor, it's much more likely that the factory hasn't hit the targets needed to receive the subsidy.
The government is using the cash as an incentive to build the factory, not just handing out cash for no reason. Just like the Foxconn factory that failed in Wisconsin, they need to hit milestones to get the money, it doesn't get handed out upfront, otherwise they'd risk a company just taking the money and running.