US finalizes $6.6 billion in chips grants for TSMC
TSMC will produce the world’s most advanced 2-nanometer technology at its second Arizona fab, which is expected to begin production in 2028.
The US has finalized a USD 6.6 billion government subsidy for Taiwan Semiconductor Manufacturing Company’s semiconductor production facility in Phoenix, Arizona, as President Joe Biden seeks to cement parts of his legislative legacy, including the US CHIPS and Science Act, before leaving office in January.
President-elect Donald Trump has been critical of the CHIPS Act. During an October interview he said it benefitted “rich companies.”
“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,” said President Biden. “This is the largest foreign direct investment in a greenfield project in the history of the United States.”
Earlier this year, TSMC agreed to expand its planned investment by USD 25 billion to USD 65 billion and add a third Arizona fab by 2030.
TSMC will produce the world’s most advanced 2-nanometer technology at its second Arizona fab, which is expected to begin production in 2028. The Taiwanese company also agreed to use its most advanced chip manufacturing tech called “A16” in Arizona, according to a Reuters report.
“The Biden-Harris Administration’s investment in TSMC Arizona is a turning point for American innovation and manufacturing that will strengthen our economic and national security,” said US Secretary of Commerce Gina Raimondo. “The leading-edge chips that will be manufactured in Arizona are foundational to the United States’ technological and economic leadership in the 21st century. Because of President Biden and Vice President Harris, the most advanced semiconductor technology on the planet will be made in America, creating thousands of jobs in the process.”
“Entering this phase of the US CHIPS and Science Act marks a pivotal step in strengthening the semiconductor ecosystem in the United States,” said TSMC Chairman and CEO Dr. C.C. Wei. “TSMC appreciates the continual collaboration with customers, partners, local communities and the US government beginning in early 2020. The signing of this agreement helps us to accelerate the development of the most advanced semiconductor manufacturing technology available in the US.”