The United States sent representatives to Taiwan to discuss criteria for granting new subsidies to companies under the chip law, Wan Meihua, the island’s economy minister, said on March 31, Reuters reported.
The criteria proposed by the United States have raised concerns among major chipmakers such as Samsung and South Korea’s SK Hynix, President Yoon Seok-yeol said. Representatives of the world’s largest custom chip maker, Taiwan’s TSMC, also raised concerns.
Conditions for companies to receive subsidies include, for example, providing information on excessive profits. Such data can reveal the strategic intentions of companies, which inevitably raises your concern.
Wan Meihua said that the US subsidy rules are directly related to the operating and investment costs of enterprises. These rules are now going through a 60-day negotiation phase. The United States sent representatives to the island to seek the opinions of the main players in the field and collect their feedback on the US initiative.
Remember that some provisions of the law can repel potential grant recipients, said Mark Lew, director of TSMC. He did not explain exactly what provisions of the law he had in mind.
As the US Commerce Department begins accepting applications, Liu said certain restrictions could alienate potential US allies and put them in an awkward position.
Liu said negotiations are underway so that Taiwanese manufacturers do not infringe on their own interests, but instead benefit from Taiwan-US cooperation.
To receive funding under the chip law, manufacturers must agree to forego expansion in certain countries, such as China, for ten years. Furthermore, they cannot participate in joint ventures or licenses in these countries if their activities cover important technologies.
Source: Rossa Primavera
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