Taiwan claims US reps arrived to discuss chip subsidy worries

The US has sent representatives to Taiwan to hear the chip industry’s concerns about the requirements for fresh U.S. semiconductor subsidies.

Yoon Suk Yeol, the president of South Korea, said on Thursday that the criteria are scaring businesses like Samsung Electronics Co. Ltd. and SK Hynix Inc., and Taiwan’s top contract chipmaker shares this concern.

Extra earnings must be shared with the US government, and according to industry sources, the application procedure itself may reveal secret company tactics. The U.S. subsidy laws and business investments and running costs have a “clear connection,” according to Wang, who was speaking to reporters in Taipei. Wang said that the guidelines are still subject to a 60-day comment period.

The Economics Ministry will undoubtedly help with communication if the industry requires government assistance in the future to interact with the United States, Wang added.

TSMC to Invest $40 Billion in New Arizona Facility

The largest contract chip manufacturer in the world, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), is investing $40 billion in a new facility in Arizona in the western United States to help Washington’s efforts to increase domestic chip production.

The subsidies would come from a $52 billion pool of research and manufacturing funds set aside under the so-called CHIPS Act of the United States, the legislation that is aimed at promoting chip manufacturing in the nation and for which the Commerce Department this month unveiled templates and guides.

According to a Department of Commerce spokesman on Thursday, citing its financing notice, the US. Department of Commerce will safeguard private business information and anticipates that the need to share surplus profit will only arise where projects dramatically exceed planned cash flow.

Vietnam Central Bank will maintain its lax monetary policy in 2023

The central bank of Vietnam announced on Friday that it would maintain a flexible monetary policy for the remainder of 2023 to maintain macroeconomic stability. It also stressed the significance of keeping inflation under control in the face of external threats.

Global banking turbulence and the Federal Reserve’s policies have significantly impacted Vietnam, a regional industrial giant, says Dao Minh Tu, deputy governor of the State Bank of Vietnam. Such tightening has had a global effect, specifically in the US.

On Thursday, the SBV declared its intention to reduce policy rates even more to bolster the economy, whose growth had been hindered by global demand, falling from 5.92% in the fourth quarter of 2022 to 3.32% in the first quarter.

In an unexpected action that defied the trend of its regional counterparts amid the instability in the global financial system, the central bank lowered several policy rates earlier this month to boost liquidity and promote growth.

Tu added that safeguarding the financial system was crucial and that some companies, notably manufacturers experiencing a drop in orders, had trouble getting loans and required assistance.