Taiwan Semiconductor Manufacturing Co (NYSE:TSM) bagged close to 147 billion New Taiwanese dollars ($4.71 billion) in government subsidies over the past two years.
The U.S., Japan, Germany, and China are all supporting the company’s aggressive global diversification.
The contract chipmaker won 4.77 billion New Taiwanese dollars in subsidies in the third quarter of 2025. This brings the total support in the first nine months of 2025 to 71.9 billion New Taiwanese dollars.
Combined with 75.16 billion New Taiwanese dollars received in 2024, the total reportedly reached 147 billion New Taiwanese dollars.
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Taiwan Semiconductor said its overseas subsidiaries — including Taiwan Semiconductor Arizona in the U.S., European Semiconductor Manufacturing Co. (ESMC) in Dresden, Japan Advanced Semiconductor Manufacturing (JASM) in Kumamoto, and Taiwan Semiconductor Nanjing in China — are using the subsidies primarily to purchase property, equipment, and facilities, while also covering operating expenses tied to newly built fabs.
The company said each subsidiary has signed agreements with local governments, including construction schedules and investment terms.
Taiwan Semiconductor, a $1.5 trillion market cap company, gained 43% year-to-date as U.S. Big Tech giants continue to aggressively invest in their AI endeavors, fueling demand for the contract chipmaker’s chips.
In Arizona, Taiwan Semiconductor qualifies for additional support covering 25% of specific investments. The company is investing $65 billion to build three advanced fabs there. Mass production at the first fab will start in late 2024. Taiwan Semiconductor has also committed another $100 billion to make three more fabs, two IC packaging plants, and a research center in the state.
Taiwan Semiconductor's Kumamoto fab began commercial production at the end of 2024, while construction of a second facility continues. In Dresden, mass-production plans will depend on customer demand and market conditions. The company also continues to operate its 12-inch wafer fab in Nanjing, which began producing 28nm chips in 2022.
Meanwhile, Taiwan Semiconductor is boosting shareholder value by raising its third-quarter cash dividend 20% to 6 New Taiwanese dollars per share and approving a $14.98 billion capital expansion plan to fuel future growth. The higher payout follows record quarterly profit and reinforces the chipmaker's confidence in its financial strength as the chipmaker continues to scale advanced manufacturing capacity for customers like Nvidia Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL).
TSM Price Action: Taiwan Semiconductor shares closed lower by 0.99% at $282.01 at Monday.
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