TSMC’s $6.6 billion grant from the US government has been finalized

In April, the United States Department of Commerce announced $6.6 billion in direct funding for TSMC under the US CHIPS and Science Act. The subsidy is now complete and will include an additional $5 billion in government loans to help expand TSMC’s semiconductor manufacturing in Phoenix, Arizona. This is the first major binding agreement on CHIPS and the Science program since its inception in 2022.

TSMC semiconductor manufacturing plant facility in Phoenix, Arizona

The agreement will distribute government funds to TSMC according to project phases, with the first $1 billion expected to be transferred before the end of this year.

Today’s latest agreement with TSMC, the world’s leading advanced semiconductor manufacturer, will spur $65 billion in 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; This means that for the first time in decades, an American manufacturing facility will produce the cutting-edge chips used in our most advanced technologies, from our smartphones to autonomous technologies. from vehicles to data centers that power artificial intelligence. – US President Joe Biden

Taiwanese semiconductor contract manufacturer agrees to increase investments in factories in Arizona to $65 billion; This represents the highest foreign direct investment as a project in U.S. history.

According to previous reports, TSMC plans to produce 4nm chips in Arizona next year, followed by 3nm chips using N2 and A16 nanosheet process technologies in 2028. The chipset maker also aims to open a third semiconductor factory in Arizona by 2030 that will produce 2nm chips.

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