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TSMC Secures $6.6B as Biden Administration Doles Out CHIPS Act Funds
With uncertainty about how a new Trump Administration will handle the $50 billion program, the outgoing administration is under pressure to make good on one of its signature legislative wins.
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Image: Alamy
On Friday (November 15), the US Commerce Department announced it finalized a $6.6 billion government subsidy for Taiwan Semiconductor Manufacturing Company (TSMC) to produce semiconductors in Phoenix, Arizona – the first award completed under the 2022 CHIPS and Science Act.
Prior to the election, during an appearance on Joe Rogan’s podcast, President-elect Donald Trump cast doubt on the CHIPS Act, calling it a “bad deal.” The act earmarks $52.7 billion to spur US semiconductor manufacturing.
TSMC, the world leader in chip production, will use the funds to bolster its $25 to $65 billion project that will see a third manufacturing facility built by 2030. Production of its 2-nanometer chips are slated to start in 2028 at its second facility. The company’s first Arizona fab is on track to fully open early next year, according to the company.
“Today’s final agreement with TSMC… 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,” President Joe Biden said in a release. “This is the largest foreign direct investment in a greenfield project in the history of the United States.”
In a statement, US Secretary of Commerce Gina Raimondo called the funding “a turning point for American innovation and manufacturing that will strengthen our economic and national security.”
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