TSMC Overseas Subsidiaries Receive NT$167.6 Billion in Grants

Taiwan Semiconductor Manufacturing Company Limited’s (TSMC) overseas subsidiaries received NT$167.6 billion in government grants through September, with nearly all of the nine-month total coming in the third quarter as support went to facilities in four countries.

The first-nine-month total was 2.3 times the amount for the same period last year. About NT$167.0 billion came in July through September, compared with about NT$590 million in the first half of 2026.

The recipients were TSMC Arizona in the United States, ESMC in Germany, JASM in Japan and TSMC Nanjing in China. Their respective governments provided the grants. The reported figures do not break down the third-quarter receipts by country or show how much came from each government.

The grants were used mainly to cover purchases of property, plant and equipment. Some also covered costs and expenses related to building fabs and running production. The nine-month total exceeded the combined NT$151.4 billion in grants recorded for all of 2024 and 2025: NT$75.2 billion in 2024 and NT$76.3 billion in 2025.

TSMC’s accounting treatment depends on what a grant supports. When a grant is tied to acquiring or building a long-lived asset, it reduces the asset’s recorded value. The benefit is then recognized over the asset’s useful life through lower depreciation or amortization, rather than all at once as income when the grant is received.

A grant that reimburses costs already incurred reduces the related expense. This means support for construction or equipment can affect earnings over time, while reimbursement for an existing expense offsets that expense.

The subsidiaries have grant agreements with local governments that set construction timelines and other conditions. The reported grant total does not show how much each subsidiary received.