TSMC's $6.6B grant from U.S. government finalized
Back in April, the United States Department of Commerce announced $6.6 billion in direct funding for TSMC under the U.S. CHIPS and Science Act. The subsidy has now been finalized and will include an additional $5 billion in government loans, which will help expand TSMC’s semiconductor production in Phoenix, Arizona. This is the first major binding contract in the CHIPS and Science program following its inception in 2022.
TSMC semiconductor manufacturing fab site in Phoenix, Arizona
The agreement will see government funds handed out to TSMC on a project milestone basis, with the first $1 billion expected to be transferred before the end of this year.
Today’s final agreement with TSMC – the world’s leading manufacturer of advanced semiconductors – will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade. This is the largest foreign direct investment in a greenfield project in the history of the United States.
The first of TSMC’s three facilities is on track to fully open early next year, which means that for the first time in decades an American manufacturing plant will be producing the leading-edge chips used in our most advanced technologies – from our smartphones, to autonomous vehicles, to the data centers powering artificial intelligence. – U.S. President Joe Biden
The Taiwanese semiconductor contract manufacturer has agreed to expand its investments in to $65 billion across its fabs in Arizona, which accounts for the highest foreign direct investment as a project in U.S. history.
As per previous reports, TSMC plans to manufacture 4nm chips in Arizona next year, followed by 3nm chips in 2028 using the N2 and A16 nanosheet process technologies. The chipset maker is also committed to opening a third semiconductor factory in Arizona by 2030, producing 2nm chips.
