TSMC scores US$11.6b from US government in chipmaking deal
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The news: The world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), will make its most advanced chips in Arizona, US, after the US Commerce Department agreed to grant the chipmaker a USD6.6 billion ($10 billion) subsidy for advanced semiconductor production and up to USD5 billion in low-cost government loans.
The numbers: TSMC announced that the funding will expand its US investment to over USD65 billion across three greenfield leading-edge fabs in Phoenix, Arizona.
The context: TSMC confirmed that with the proposed funding, it will produce the world’s most advanced 2 nanometre technology at its second Arizona fabrication plant (fab) from 2028, and also committed to build an additional fab in the country by the end of the decade.
The National Institute of Standards and Technology (NIST), which is now part of the US Department of Commerce, said that TSMC’s USD65 billion investment is the largest foreign direct investment in a greenfield project in US history.
The grants fall under the Chips and Science Act which aims to boost US semiconductor output, with lawmakers having approved USD75 billion in government loan authority.
What they said: US President Joe Biden said: “These facilities will manufacture the most advanced chips in the world, putting us on track to produce 20% of the world’s leading-edge semiconductors by 2030. The agreement also dedicates $50 million of CHIPS funding to training and developing the local workforce, so workers don’t have to leave their hometowns to find good-paying jobs in innovative industries […] TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”
The sources: NIST press release, TSMC press release
