Taiwan Semiconductor Manufacturing Co. (TSMC), the global leader in semiconductor fabrication, is set to receive up to $6.6 billion in U.S. government funding under a preliminary agreement announced by the Biden administration. The funding, under the U.S. CHIPS and Science Act, will support TSMC’s more than $65 billion investment in three cutting-edge fabrication plants in Phoenix, Arizona.
The Taiwanese multinational semiconductor company is also eligible for around $5 billion in proposed loans under the CHIPS Act. U.S. Secretary of Commerce Gina Raimondo said at a press briefing that the agreement was “huge,” adding that the partnership with TSMC will bring “the manufacturing of the world’s most advanced chips to American soil.”
According to Raimondo, the funds will include $50 million to train and develop local talent in Arizona, with TSMC Arizona having already created more than 25,000 jobs and attracted 14 semiconductor suppliers for the state.
The CHIPS Act passed in August 2022, is an almost $53 billion package aimed at building the U.S. domestic semiconductor industry to boost the country’s economy and better compete with rivals such as China for national security purposes.
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