TSMC is about to get a hefty chunk of funding from the United States government.
The United States Commerce Department on Monday announced that it will be allocating a $6.6 billion subsidy to chip manufacturer TSMC for the advancement of semiconductor production in Phoenix, Arizona. TSMC will also receive $5 billion in loans and be eligible to claim an investment tax credit of up to 25 percent of capital expenditures. The move is part of a larger initiative under the CHIPS and Science Act, which aims to rejuvenate the United States’ semiconductor manufacturing capabilities.
TSMC has already committed to an escalated investment of $25 billion, raising its total investment to $65 billion, and making this the largest foreign direct investment in a new project in U.S. history.
TSMC has also announced plans to construct a third fabrication plant in Arizona by 2030. The first TSMC plant in Arizona will start producing 4nm chips next year. The second plant, originally designed to make 3nm chips, will also make 2nm ones by 2028. The third plant will produce 2nm chips with the capacity to make even more advanced semiconductors in the future.
Apple and TSMC are currently partnering and producing Apple’s most advanced chips, which are based on the 3nm process.
Stay tuned for additional details as they become available.