TSMC gets $6.6 billion in chipmaking cash from Biden while pledging to build a third Arizona plant
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2024-4-8 Ben Werschkul
The Biden administration said Monday it plans to send up to $6.6 billion in federal grants to the Taiwan Semiconductor Manufacturing Company (TSM) as the chipmaking giant promises a $25 billion Arizona expansion that will bring a third TSMC fabrication plant to that state.
The deal, the second major US chipmaking grant announcement of the last three weeks, is part of President Joe Biden's effort to restart advanced semiconductor manufacturing in the US.
In March Biden said the US would provide up to $8.5 billion in grants in the years ahead to Intel (INTC) to support a range of new projects in Arizona, Ohio, New Mexico, and Oregon.
The money for both companies is coming from 2022's CHIPs and Science law, a signature accomplishment of Biden's current term.
TSMC will use the grants to fund the continued construction of two manufacturing plants already being built in the Phoenix area. The company also announced Monday it would build a third facility there in the years ahead.
The goal is for all three plants to be online by the end of the decade and producing TSMC's most advanced chips. Some of the plants even hope to use a forthcoming 2 nanometer fabrication process and make even more advanced chips than are currently available.
"These are the chips that underpin all artificial intelligence and they are the chips that are necessary components for the technology that we need to underpin our economy," Commerce Secretary Gina Raimondo told reporters ahead of the announcement
The $6.6 billion in grants to be doled out in the years ahead include an allotment of $50 million for workforce development as well as additional authorization for up to $5 billion in government loans. That inflow comes in addition to manufacturing tax credits in the 2022 law that could be worth additional billions.
The government money will pair with TSMC's plans to invest over $65 billion in its Arizona operations. It had previously announced $40 billion and said today it would add an additional $25 billion largely to fund construction of the third fabrication facility.
备注：
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