Categories: Finance

TSMC receives $6.6 billion in funding from Biden for chipmaking, commits to constructing third Arizona plant

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The Biden administration is making big moves to revitalize the semiconductor industry in the United States, with a recent announcement of up to $6.6 billion in federal grants to the Taiwan Semiconductor Manufacturing Company (TSMC). This funding will support TSMC’s $25 billion expansion in Arizona, which includes the construction of a third fabrication plant in the state.

This initiative is part of President Biden’s broader efforts to bring advanced semiconductor manufacturing back to the US. In addition to the grants for TSMC, the administration has also pledged up to $8.5 billion in grants to Intel for various projects in Arizona, Ohio, New Mexico, and Oregon.

The funding for both companies is coming from the 2022 CHIPs and Science law, a key achievement of the Biden administration. TSMC plans to use the grants to continue construction on two existing manufacturing plants in Phoenix and to build a third facility in the coming years. The goal is to have all three plants operational by the end of the decade, producing the company’s most advanced chips, including those made with a 2 nanometer fabrication process.

Commerce Secretary Gina Raimondo emphasized the importance of these chips, which are essential for artificial intelligence and other technologies driving the economy. The grants to TSMC will also include funding for workforce development and government loans, in addition to manufacturing tax credits provided by the 2022 law.

This announcement underscores Arizona’s growing role in semiconductor manufacturing, with President Biden making multiple visits to the state to announce these grants. The investment from TSMC is expected to create thousands of jobs and boost the US’s semiconductor production capacity significantly. With the goal of producing 20% of the world’s most advanced chips by the end of the decade, the Biden administration is pushing for a major resurgence in American semiconductor manufacturing.

Team@GQN.