The Chips Act funding is a game-changer for the US chip manufacturing industry. TSMC, a leading semiconductor manufacturer, has received significant funding to establish a new chip factory in the US.
This move will create thousands of jobs and stimulate economic growth in the region. The factory will produce advanced chips using cutting-edge technology.
TSMC plans to invest $12 billion in the new factory, which is expected to be operational by 2026. The funding will also support the development of a new semiconductor research and development center.
The Chips Act funding is a crucial step towards reducing the US's reliance on foreign chip manufacturers and promoting domestic innovation.
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TSMC Funding
The TSMC funding is a significant part of the CHIPS Act's rollout, with a preliminary agreement for up to $6.6 billion in grants and up to $5 billion in loans for the Taiwan Semiconductor Manufacturing Company.
This deal is the latest in the CHIPS program's efforts to restart the semiconductor industry in the U.S.
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The new TSMC funding, combined with the company's pledge to spend on expanding facilities in Arizona, represents a $65 billion investment altogether.
In addition to direct funding, the government will also provide TSMC with $5 billion in low-cost loans.
The investment is connected to the US Chips and Science Act, which aims to boost US semiconductor research, development, and production.
The US government and TSMC signed a preliminary agreement in April, marking a significant step toward providing a reliable domestic supply of chips.
At full capacity, TSMC Arizona's three fabs are expected to manufacture tens of millions of leading-edge logic chips that will power products like 5G/6G smartphones and autonomous vehicles.
The first of the three planned TSMC facilities will open early next year.
This investment is a "significant" step toward providing a reliable domestic supply of chips, powering AI and other fast-growing industries.
The award is from the CHIPS and Science Act, championed through the U.S. House of Representatives by Congressman Greg Stanton, to bring microchip manufacturing back to America, create jobs, and strengthen national security.
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TSMC Arizona Corporation, a subsidiary of Taiwan Semiconductor Manufacturing Company Limited, will receive $6.6 billion in direct funding from the CHIPS and Science Act, and approximately $5 billion in loans.
This funding will support TSMC's investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world's most advanced semiconductors.
The award is expected to create approximately 6,000 direct manufacturing jobs, more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect jobs at TSMC's suppliers in this decade.
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TSMC Investment in US Chip Market
TSMC is investing a whopping $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world's most advanced semiconductors.
This massive investment is made possible by the CHIPS and Science Act, a 2022 law designed to restart the semiconductor industry in the US. The Act provides direct funding and loans to companies like TSMC to bring microchip manufacturing back to America.
TSMC's investment is expected to create approximately 6,000 direct manufacturing jobs, more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect jobs at TSMC's suppliers in this decade.
The US Department of Commerce has announced that TSMC will receive $6.6 billion in direct funding and approximately $5 billion in loans from the CHIPS and Science Act. This funding will support TSMC's investment in the three fabs.
The US government has awarded Taiwan Semiconductor Manufacturing Corporation (TSMC) $6.6 billion in direct funding to support the company's US unit in its planned investment of $65 billion in the US state of Arizona.
At full capacity, TSMC Arizona's three fabs are expected to manufacture tens of millions of leading-edge logic chips that will power products like 5G/6G smartphones, autonomous vehicles, and high-performance computing and AI applications.
President Joe Biden has hailed the investment as the largest foreign direct investment in US history for a greenfield project, and a significant step toward providing a reliable domestic supply of chips, powering AI and other fast-growing industries.
The US government and TSMC signed a preliminary agreement in April, and the first of the three planned TSMC facilities is expected to open early next year.
For your interest: Tsmc Chips Act Arizona Investment
TSMC Arizona Funding
TSMC has secured a preliminary agreement for up to $6.6 billion in grants, plus up to $5 billion in loans, for its US unit in Arizona.
The investment represents a $65 billion investment altogether, per Mike Schmidt, director of the CHIPS program office at the Department of Commerce.
This is the largest foreign direct investment in the history of the country, in terms of developing a new asset from the ground up.
The Commerce Department has built a team from the ground up to figure out how to spend the almost $40 billion in manufacturing incentives.
The US is on track to produce about 20% of the world's most advanced chips by 2030, thanks to the CHIPS funding.
TSMC is expected to create "tens of thousands" of jobs by 2030 in Arizona.
The investment is connected to the US Chips and Science Act, which aims to boost US semiconductor research, development and production.
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At full capacity, TSMC Arizona's three fabs are expected to manufacture tens of millions of leading-edge logic chips.
The first of the three planned TSMC facilities will open early next year.
The US government has awarded Taiwan Semiconductor Manufacturing Corporation (TSMC) $6.6 billion in direct funding to support the company's US unit in its planned investment of $65 billion in the US state of Arizona.
In addition to direct funding, the government will also provide TSMC with $5 billion in low-cost loans.
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Frequently Asked Questions
Who got money from the CHIPS Act?
The CHIPS Act provided direct funding awards to companies like GlobalFoundries, Intel, Micron, TI, Samsung, and TSMC. These leading chip manufacturers received financial support to boost domestic semiconductor production.
How much money did Biden give TSMC?
The Biden administration provided TSMC with a $6.6 billion subsidy. This is part of a larger $65 billion pledge to support chip manufacturing in the U.S.
Has secured $7.86 billion in CHIPS Act funding Intel?
Yes, Intel has secured up to $7.86 billion in funding from the U.S. CHIPS and Science Act for its commercial semiconductor manufacturing projects. This funding is part of a direct award from the U.S. Department of Commerce.
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