In a landmark move for the semiconductor industry and U.S. technological advancement, the White House has confirmed the finalization of a significant $6.6 billion CHIPS Act grant to Taiwan Semiconductor Manufacturing Co. (TSMC) for its Arizona factory development, with $1 billion expected by year end.
The CHIPS Act grant is set to bolster TSMC's presence and capabilities within the United States as the company has initiated engineering wafer production in April with its state-of-the-art N4 process technology. With plans to commence mass production at the Arizona site in 2025, and operations at a second facility expected in 2028, TSMC's contribution to the local and national economy is poised for a considerable uplift.
Indeed, the federal support structure extended to TSMC could surpass $27 billion, comprising a mix of grants, loans, and tax credits. This heavyweight funding underpins what U.S. Secretary of Commerce Gina Raimondo considers one of the most critical U.S. investments in recent times, concentrated on driving forward the nation's economic and national security.
Further cementing its commitment to the region, TSMC has plans underway for a third facility in Arizona, which would elevate its total investment from $40 billion to an impressive $65 billion. This expansion is particularly noteworthy due to its focus on the production of advanced 2-nanometer chips, which are set to play a pivotal role in a diverse range of applications.
Beyond TSMC, the Department of Commerce has showcased its dedication to strengthening semiconductor manufacturing across the United States, having allocated $36 billion in grants to various companies. Included in this list of recipients are notable names such as Intel, Amkor Technology, Wolfspeed, and Microchip Technology. This move is part of a broader strategy, with a total of $39 billion earmarked to reinvigorate the U.S. semiconductor landscape.
TSMC's forthcoming disbursement of $1 billion by year's end to propel the development of its Arizona factory site manifests the urgent pace and significance the U.S. government is placing on domestic chip production. Indeed, the strategic investment in TSMC is not just a boon for the company but is heralded as a vital stitch in the fabric of the United States' technological sovereignty.
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