TSMC received NT$47.545 billion in government subsidies from mainland China and Japan in 2023, a year-on-year increase of 5.74 times

According to news on March 7, TSMC’s financial report data showed that in 2023, TSMC’s Japanese subsidiary JASM and its Nanjing subsidiary in China received a large amount of subsidies.

Data shows that TSMC received approximately NT$7.051 billion in government subsidies from Japan and Mainland China in 2022 (IT House Note: currently approximately NT$1.608 billion), while subsidies from Japan and Mainland China in 2023 reached NT$47.545 billion. New Taiwan dollars (currently about 10.84 billion yuan, TSMC did not specify how much it received), a year-on-year increase of 40.494 billion yuan, an increase of 5.74 times. It is still expected to obtain more subsidies from the Japanese government, as well as new subsidies from the US and German governments.

TSMC pointed out that official subsidies from Japan and mainland China are mainly used to subsidize TSMC’s costs related to acquiring real estate, building factories, and purchasing equipment. It also includes part of the subsidy costs for building factories and production operations.

TSMC also announced last month that it would build a second factory in Kumamoto. Japanese Minister of Economy, Trade and Industry Takeru Saito pointed out that the Japanese government has determined to subsidize TSMC 732 billion yen (currently about 35.282 billion yuan), which means that TSMC will More subsidies will be obtained from the Japanese government.

The previously delayed TSMC Arizona plant in the United States is expected to be put into operation in 2025, with an investment scale of US$40 billion (currently about 288 billion yuan). TSMC expects to have the opportunity to obtain factory construction subsidies from the US government in the future. The industry believes that if the U.S. government can provide generous subsidies, it will greatly increase TSMC's willingness to follow up with new factories.