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Taiwan Semiconductor Manufacturing Co. Could Receive $6.6B for AZ Plants

U.S. Secretary of Commerce Gina Raimondo

TSMC's Arizona division will potentially receive $6.6 billion in U.S. government funding as per an initial agreement unveiled by the Biden administration on Monday. The money, secured through the CHIPS and Science Act, aims to bolster Taiwan Semiconductor Manufacturing Co.'s $65 billion investment in three state-of-the-art fabrication facilities in Phoenix. The multinational Taiwanese semiconductor giant is also eligible for approximately $5 billion in potential loans under the CHIPS Act.

“The leading-edge semiconductors that will be made here in Arizona are foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing,” Commerce Secretary Gina Raimondo said in a statement. Raimondo revealed that the funds will encompass $50 million allocated for training and nurturing local talent in Arizona, with TSMC Arizona already having generated over 25,000 employment opportunities and drawn in 14 semiconductor suppliers to the state.

The CHIPS Act, passed in August 2022, is a nearly $53 billion initiative aimed at building the domestic semiconductor industry in the U.S.. A major objective of the act is to bolster the nation's economy while increasing competitiveness against adversaries like China for national security reasons.

The legislation offers substantial incentives for companies to manufacture chips domestically. This is contingent upon refraining from expanding specific semiconductor production operations in China and other nations flagged as national security risks.

During Monday's press briefing, Raimondo commended TSMC's endeavor in Arizona, heralding it as the largest foreign investment in the state's history, underscoring the Biden administration and the U.S. Congress' leadership in chip manufacturing.

TSMC stands as the global frontrunner in semiconductor fabrication, responsible for producing the majority of the world's cutting-edge logic chips utilized in burgeoning technologies such as artificial intelligence. Its Arizona facilities are anticipated to cater to clients including Apple and Advanced Micro Devices (AMD).

Read full article on CNBC

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