TAIPEI (Reuters) – Taiwanese chipmaker TSMC mentioned on Monday it’s speaking with Washington about its “steerage” for a regulation designed to spice up U.S. semiconductor manufacturing that has sparked considerations about subsidy standards.

Circumstances for subsidies embody sharing extra revenue with the U.S. authorities, and {industry} sources have mentioned the applying course of itself might expose confidential company technique.

“We will affirm that we’re speaking with the U.S. authorities concerning the CHIPS ACT steerage,” TSMC, the world’s main contract chipmaker, mentioned in a brief emailed assertion.

South Korean President Yoon Suk Yeol additionally mentioned final month that the factors are worrying corporations like Samsung Electronics (OTC:) Co Ltd and SK Hynix Inc.

Taiwan Financial system Minister Wang Mei-hua instructed reporters on Monday that TSMC was particularly speaking to the US concerning the particulars of the subsidies.

“The Taiwan authorities and {industry} have a really shut understanding (of what’s going on) and hope that the small print of the related subsidy laws won’t have an effect on industrial cooperation between the 2 sides and prices for industry-related development,” she mentioned.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) is investing $40 billion in a brand new plant within the western U.S. state of Arizona, supporting Washington’s plans for extra chip-making at dwelling.

Particulars of anticipated subsidies for the plant haven’t been disclosed.

The subsidies would come from a $52 billion pool of analysis and manufacturing funds earmarked below the CHIPS Act.

The U.S. Division of Commerce mentioned final month it’ll shield confidential enterprise data and expects that the requirement to share extra revenue will solely happen when initiatives considerably exceed projected money circulation.