Technology
Monday, April 8th, 2024 2:06 pm EDT
Key Points
- Government Funding for TSMC’s Arizona Subsidiary: The Biden administration announced a preliminary agreement granting up to $6.6 billion in U.S. government funding to TSMC’s Arizona subsidiary under the U.S. CHIPS and Science Act, supporting the company’s substantial investment of over $65 billion in three cutting-edge fabrication plants in Phoenix.
- Eligibility for Loans under the CHIPS Act: TSMC, as a Taiwanese multinational semiconductor company, is also eligible for around $5 billion in proposed loans under the CHIPS Act, aimed at bolstering the U.S. domestic semiconductor industry and enhancing economic competitiveness against global rivals, particularly China, for national security reasons.
- Impact and Significance of the Agreement: U.S. Secretary of Commerce Gina Raimondo emphasized the significance of the agreement, stating that it will bring the manufacturing of the world’s most advanced chips to American soil. The funding includes provisions for training and developing local talent in Arizona, contributing to job creation and economic growth. Raimondo lauded TSMC’s investment in Arizona as evidence of strong chip leadership from the Biden administration and the U.S. Congress, highlighting its potential to supply chips to major customers like Apple and Advanced Micro Devices.
The Biden administration announced a preliminary agreement granting up to $6.6 billion in U.S. government funding to TSMC’s Arizona subsidiary under the U.S. CHIPS and Science Act. This funding is intended to support TSMC’s substantial investment of over $65 billion in three state-of-the-art fabrication plants in Phoenix, as outlined in the nonbinding agreement. Additionally, TSMC is eligible for approximately $5 billion in proposed loans under the CHIPS Act. U.S. Secretary of Commerce Gina Raimondo hailed the agreement as significant, emphasizing that it will bring the manufacturing of advanced chips to American soil and bolster the domestic semiconductor industry. The funds will also allocate $50 million to train and develop local talent in Arizona, with TSMC Arizona already contributing over 25,000 jobs and attracting 14 semiconductor suppliers to the state. The CHIPS Act, passed in August 2022, aims to strengthen the U.S. semiconductor industry, enhance economic competitiveness, and address national security concerns. It provides substantial incentives for companies to produce chips domestically, with restrictions on expanding certain semiconductor manufacturing operations in countries deemed national security risks, such as China. Raimondo praised TSMC’s investment in Arizona, highlighting it as the largest foreign investment in the state’s history and a testament to strong chip leadership from the Biden administration and Congress. As the global leader in semiconductor fabrication, TSMC’s Arizona facilities are expected to supply chips to major customers like Apple and Advanced Micro Devices. Other companies benefiting from CHIPS Act funding include GlobalFoundries, Microchip, BAE Systems, and Intel, which recently received substantial funding to boost domestic semiconductor production.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/08/tsmc-set-to-receive-up-to-6point6-billion-in-funding-for-arizona-plants-.html
