TSMC Gets $11.6 Billion in US Grants, Loans for Chip Plants
The US plans to award Taiwan Semiconductor Manufacturing Co. $6.6 billion in grants and over $5 billion in loans to help the world’s top chipmaker build factories in Arizona, expanding President Joe Biden’s effort to boost domestic production of critical technology.
Tweet on TSCM Chip Acts expansion
The US plans to award Taiwan's TSCM $6.6 billion in grants and as much as $5 billion in loans to help the world’s top chipmaker build factories in Arizona#semiconductor #ai #ChipsAct pic.twitter.com/AkHX66sXse
— The_Journalbiz (@the_journalbiz) April 8, 2024
Bloomberg chart on Chip Acts grants
Under the preliminary agreement announced by the US on Monday, TSMC will construct a third factory in Phoenix, adding to two facilities in the state that are expected to begin production in 2025 and 2028.
In total, the package will support more than $65 billion in investments at the three plants by TSMC, the go-to chipmaker for companies such as Apple Inc. and Nvidia Corp.
TSMC’s third fabrication site, or fab, will rely on next-generation 2-nanometer process technology and is slated to be operational before the end of the decade. US Commerce Secretary Gina Raimondo said the 2nm chips are essential to emerging technologies including artificial intelligence, as well as for the military.
TSMC’s American depositary receipts rose as much as 2.8% Monday morning in New York to $145.35.
