Most everyone hates tax day, but not Taiwan Semiconductor Manufacturing Co. In the first quarter, the company made $354 million NT ($10.5 million) more after taxes than before. The numbers for the second quarter, coming at the end of the month, will likely show the same thing.
The odd result comes from the generous tax breaks and carryover credits many countries give to chipmakers that build facilities in those nations. "The cumulative effect of various tax credits, holidays and special deductions is that companies like TSMC and UMC can be highly profitable but pay virtually no taxes to the government year after year," Daryl Hatano of the Semiconductor Industry Association wrote in a report.