News TSMC will receive $5 billion incentive from U.S. for Arizona fab: Report

[Admin]

U.S. government reportedly preps $5 billion incentive package for TSMC.

TSMC will receive $5 billion incentive from U.S. for Arizona fab: Report : Read more

 

[NedSmelly]

I’ve always wondered how governments stop private entities from doing a grab and dash with these kinds of grants. In AU the federal govt gave General Motors a huge pot of public money to keep local auto manufacturing, and they pretty much shut down and left the country a few months later.

Or perhaps I’m just naive about how governments (and lobby groups) work.

 

[Udyr]

I’ve always wondered how governments stop private entities from doing a grab and dash with these kinds of grants. In AU the federal govt gave General Motors a huge pot of public money to keep local auto manufacturing, and they pretty much shut down and left the country a few months later.

Or perhaps I’m just naive about how governments (and lobby groups) work.

Agreements/contracts.

GM wasn't doing well in AU and some nearby markets, and probably the government provided some incentives to stay a little longer, even if they eventually decided to leave.

 

[vern72]

It's about time that the government "chipped in" 😆

 

[Geef]

It's about time that the government "chipped in" 😆

Took a few seconds for me to 'process' that joke. 🤔

 

[Notton]

I’ve always wondered how governments stop private entities from doing a grab and dash with these kinds of grants. In AU the federal govt gave General Motors a huge pot of public money to keep local auto manufacturing, and they pretty much shut down and left the country a few months later.

Or perhaps I’m just naive about how governments (and lobby groups) work.

If you get blacklisted enough, the government can locally seize assets. Things like bank accounts, properties, etc.

If you draw a lot of ire, there is the potential that other countries can join in and you would be locked out of several large markets.

Shareholders might see that and think it is not worth holding stocks from that company.

The catch is, it is pretty rare for things to escalate that far.

That and the USA is not Australia, and has a significantly larger market. Being locked out of the USA market is devastating from a business perspective.

 

[JeffreyP55]

U.S. government reportedly preps $5 billion incentive package for TSMC.

TSMC will receive $5 billion incentive from U.S. for Arizona fab: Report : Read more

A whole lot of folks here in AZ don't know their * from a hole in the ground. TSMC has to start training these unskilled folks now. Coming from the SFBA this is a journey in Phoenix is of the unknown.

 

[Disappointed1]

So, how is TSMC going to recieve funding since the Chips Act has the buy American clause? TSMC exported hundreds of millions of dollars of materials to the US to build the fab in AZ from Taiwan. These materials could have been provided by US suppliers. TSMC also has roughly 500 construction workers from Taiwan working on that site. They complain that the US Union construction worker do not have the skills yet other chip manufacturers appear to build fabs without the kind of problems that TSMC talks about.