China and Japan have aggressively increased subsidies in the past year for chipmakers in general and TSMC in particular. The company's 2023 annual report indicates that the grants it received from Chinese and Japanese governments increased 6.74 times year-over-year. In total, TSMC got around $1.51 billion in government grants from China and Japan, which it used to build and equip its fabs, notes TrendForce.
"Subsidiaries such as JASM and TSMC Nanjing received subsidies from the governments of Japan and China, respectively, for local plants setup and operation, which were mainly used to subsidize the purchase costs of property, plant and equipment as well as partial costs and expenses incurred from plant construction and production," TSMC's annual report reads. "For the years ended December 31, 2023 and 2022, TSMC received a total of $NT$47,546 billion ($1.51 billion) and NT$7,051 billion ($224.1 million) as government grants respectively."
