U.S. lawmakers kick – require details of TSMC’s deal with the government

The U.S. government has been trying to get Taiwanese manufacturer, TSMC, to build its advanced foundry on U.S. soil. A few days ago, the government finally got its way and had an agreement with TSMC. On its part, TSMC announced that it intends to build and operate an advanced fab in Arizona. According to the company, it has a mutual understanding, commitment, and support of the US federal government and Arizona. The fab will start construction in 2021 and mass production will begin in 2024. From 2021 to 2029, TSMC’s expenditures (including capital expenditures) on this project will be approximately $12 billion.

However, the U.S government did not reveal the details of its commitment to this project. Today, according to media reports, three U.S. lawmakers sent a letter on Tuesday asking the U.S. administration to publish details of TSMC’s deal in the U.S. This includes the financing and subsidies.

U.S. lawmakers want more clarity in the deal

In the letter from top Senate Democrat Chuck Schumer as well as Patrick Leahy and Jack Reed, they “strongly support” the administration’s plan to “on-shore” semiconductor plants in the country. However, they are calling for more transparency and need the government to consider pre-existing companies like Micron, GlobalFoundries, and Cree.

For the lawmakers, there are many questions that require answers. For instance, how TSMC plans to set up factories. Also, they need to know how the government plans to maintain the overall strategy of establishing a diversified US semiconductor manufacturing supply chain. The lawmakers want plans such as commitments on financing, tax benefits, licensing and other incentives, to be the relevant authorities and committees before such consultations or discussions.

“We ask that you cease any such negotiations or discussions until you have briefed the relevant authorization and appropriations committees with your plans, including any commitments you have made to funding, tax breaks, licensures, or other incentives,” they added.