Taiwan's economy is deeply dependent on TSMC. By preventing TSMC from selling to the mainland while encouraging subsidies for TSMC's competitors in other countries the US is really squeezing Taiwan with unclear long-term consequences.
So, basically TSMC as a corporate entity's profits/revenues can keep chugging along. Taiwan itself continues to have a risky/uncertain future.
Most of the US subsidies are going to Intel (including for them setting up their foundry services which directly competes with TSMC). However there are some for TSMC for setting up in the US, that is true.