In November 2022 it was reported that Apple manufacturing partner TSMC plans to build another fabrication plant in Arizona alongside the US$12 billion factory it has already committed to in Phoenix. However, those plans may be in jeopardy.

The second plant is (was?) expected to manufacture next-generation 3nm chips, a process that Apple is rumored to be moving its custom silicon to starting with the M2 Pro or M3 chip. But, according to The Wall Street Journal (a subscription is required to read the article), TSMS, which plans to invest $40 billion in two chip factories in Arizona, is concerned about rules that could require it to share profits from the factories and provide detailed information about operations, said people familiar with the situation.

Chairman Mark Liu [said] “Some of the conditions are unacceptable and we aim to mitigate any negative impact from these and will continue discussions with the U.S. government.”

The WSJ says that TSMC expects to get tax credits of some $7 billion to $8 billion under provisions of the Chips Act, according to people familiar with the company’s plans. That’s about twice what was initially expected. What’s more, The WSJ says TSMC is thinking of asking for some $6 billion to $7 billion in grants for the two Arizona plants, bringing total U.S. government support as high as $15 billion.

Article provided with permission from AppleWorld.Today