Conditions for subsidies embody sharing extra revenue with the U.S. authorities, and trade sources have mentioned the appliance course of itself may expose confidential company technique.

“We can confirm that we are communicating with the U.S. government about the CHIPS ACT guidance,” TSMC, the world’s main contract chipmaker, mentioned in a brief emailed assertion.

South Korean President Yoon Suk Yeol additionally mentioned final month that the factors are worrying corporations like Samsung Electronics Co Ltd and SK Hynix Inc.

Taiwan Economy Minister Wang Mei-hua advised reporters on Monday that TSMC was particularly speaking to the United States concerning the particulars of the subsidies.

“The Taiwan government and industry have a very close understanding (of what is going on) and hope that the details of the relevant subsidy legislation will not affect industrial cooperation between the two sides and costs for industry-related construction,” she mentioned.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) is investing $40 billion in a brand new plant within the western U.S. state of Arizona, supporting Washington’s plans for extra chip-making at residence.

Details of anticipated subsidies for the plant haven’t been disclosed.

The subsidies would come from a $52 billion pool of analysis and manufacturing funds earmarked beneath the CHIPS Act.

The U.S. Department of Commerce mentioned final month it would defend confidential enterprise data and expects that the requirement to share extra revenue will solely happen when tasks considerably exceed projected money stream.