TSMC Government Grants Reach NT$167,586,589 Thousand in 9 Months
Key Facts
TSMC received government grants totaling NT$167,586,589 thousand during the nine months ended September 30, 2026, according to its consolidated third-quarter financial statements. The grants came from the governments of the United States, Germany, Japan and China, the company’s financial disclosure showed. Most of the funds were concentrated in the third quarter, when the company received NT$166.996 billion, after NT$590 million in the first half of the year, Focus Taiwan reported. That puts government support tied to the company’s overseas projects among the leading details of the period’s results. The grants come as TSMC moves ahead with building new factories and operating facilities outside Taiwan.
The year-on-year comparison shows the grants’ value widened; they totaled NT$71,897,986 thousand in the first nine months of 2025, compared with NT$167,586,589 thousand in the corresponding period of 2026, according to the financial statements. The company said its subsidiaries received support from the governments connected to their projects: TSMC Arizona in the United States, ESMC in Germany, JASM in Japan and TSMC Nanjing in China. This distribution links the grants to specific subsidiaries and locations, rather than presenting them as support separate from the company’s industrial expansion. The disclosure did not provide a numerical breakdown of total grants by government or project. The announced figure therefore remains a period total, while the statements identify the subsidiaries and countries associated with the grants.
TSMC said the grants are used mainly to support costs for purchasing property, facilities and equipment, along with part of the expenses and costs associated with factory construction and production. The support is therefore tied to multiple stages of industrial investment, from site preparation and equipment purchases to construction and production costs. The funds are subject to agreements that the subsidiaries entered into with local governments, according to the financial disclosure. Those agreements include construction schedules and other conditions that must be met. These terms show that the grants are linked to specific execution commitments, while the disclosure provided no further details on the terms of each agreement individually.
In the United States, TSMC’s first Arizona factory began commercial production in the fourth quarter of 2024 using 4-nanometer technology, according to Focus Taiwan. Construction of the second factory was completed and equipment installation began, with volume production targeted to start in the third quarter of 2027 using 3-nanometer technology. In Japan, the first factory in Kumamoto began commercial production at the end of 2024, while a second factory is being built there. The second Japanese factory is scheduled to begin volume production in 2028, according to the report. The company’s factory in Dresden is scheduled to begin volume production in 2027.
The grants coincided with growth in the company’s business in the third quarter: revenue rose 50.9% year on year, while net income and diluted earnings per share each increased 68.7%, according to TSMC’s results. Chief Financial Officer Wendell Huang said the third-quarter business was "supported by strong demand for our leading-edge process technologies." The company added that it expects revenue of between US$52.3 billion and US$54.3 billion in the fourth quarter of 2026. October revenue was also NT$586.89 billion, up 59.7% from the same month in 2025 and 14.7% from September 2026. These figures provide context for the company’s performance, while the grants disclosure focuses on funding for manufacturing sites, construction and production.
In a forthcoming spending move, TSMC’s board of directors approved capital appropriations of about US$40,926.70 million on November 10, 2026, including, among other purposes, factory and facility construction and research and development investments for 2027. This is separate from the government grants reported in the statements, but puts the company’s capital spending plans in the context of its ongoing expansion. On demand, Chairman and Chief Executive Officer C. C. Wei said the AI market "is still very strong," according to the Associated Press report from the company’s conference. The company continues, according to the announced schedules, to work toward the planned production dates in Arizona, Kumamoto and Dresden.