The U.S. government announces a preliminary agreement to provide up to $6.6 billion in funding to TSMC’s Arizona subsidiary, bolstering the company’s $65 billion investment in advanced fabrication plants.
The move aligns with the US CHIPS and Science Act, aiming to enhance domestic chip production for economic and national security reasons.
1. TSMC’s Arizona subsidiary secures up to $6.6 billion in U.S. government funding to support its investment in three cutting-edge fabrication plants in Phoenix.
2. The funding, part of the US CHIPS and Science Act, includes proposed loans of around $5 billion, enabling TSMC’s expansion while fostering domestic chip manufacturing capabilities.
3. U.S. Commerce Secretary Gina Raimondo hails the agreement as a significant step, emphasising the strategic importance of bringing advanced chip manufacturing to American soil.
4. The initiative includes $50 million for local talent development in Arizona, with TSMC already generating over 25,000 jobs and attracting multiple semiconductor suppliers to the state.
5. Enacted in August 2022, the CHIPS Act aims to strengthen the U.S. chip industry, providing incentives for companies to produce chips domestically to mitigate national security risks.
6. TSMC’s investment in Arizona marks the largest foreign investment in the state’s history, reflecting the Biden administration’s commitment to fostering chip leadership and competitiveness.
7. TSMC, a global semiconductor leader, is expected to supply chips from its Arizona factories to prominent customers like Apple and AMD, contributing to technological innovation and economic growth.
8. Other companies, including GlobalFoundries, Microchip, BAE Systems, and Intel, have also received funding under the CHIPS Act, signalling a concerted effort to fortify domestic chip production capabilities.
