A delegation led by US House of Representatives Speaker Nancy Pelosi yesterday met with Taiwan Semiconductor Manufacturing Co (TSMC) chairman Mark Liu (劉德音) to discuss the passage of the draft “creating helpful incentives to produce semiconductors (CHIPS) and science act” in the US Congress, Democratic Progressive Party (DPP) caucus whip Ker Chien-ming (柯建銘) said.
Ker made the remarks after Pelosi’s congressional delegation wrapped up a one-hour meeting with Deputy Legislative Speaker Tsai Chi-chang (蔡其昌) and the legislative caucus whips of four political parties to exchange views about key issues. Ker did not disclose what issues were discussed.
“One US lawmaker specifically talked about his efforts to push through the CHIPS act, which he believes will exert deep influence on the semiconductor industry and the whole supply chain,” Ker told reporters. “To my understanding, Pelosi and her delegation met TSMC chairman Mark Liu this morning. They talked about the chip issue and the meaning behind the passage of the CHIPS act.”
Photo from President Tsai Ing-wen’s Facebook page
TSMC, however, said there was no private meetings between Liu and Pelosi.
TSMC, the nation’s most valuable company and the world’s largest contract chipmaker, said it has no comments on the meeting between Pelosi and Liu, nor on the CHIPS act and its US$52 billion in subsidies.
The act is considered an important legislative base for chipmakers to receive US government subsidies and tax incentives for building new chip capacity in the country, where chip manufacturing costs are much higher than in Taiwan.
Photo: Still frame grab from CNN.com
The subsidies would help narrow the manufacturing cost gap, TSMC said earlier.
The act stipulates that companies that receive funding cannot use it to boost production of advanced chips in China.
Last month, Liu told investors that the cost of its new fab in Arizona, which is under construction, was higher than expected and it is increasing.
“We are still working on the government subsidy and we’ll continue working on the cost reduction,” he said.
Production costs at TSMC’s Oregon factory are 50 percent higher than at its factories in Taiwan, company founder Morris Chang (張忠謀) said in April.
TSMC is building a US$12 billion fab in Arizona aiming to produce 5-nanometer chips from 2024.
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