The U.S. Department of Commerce has provided up to $6.6 billion in direct funding to TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company (TSMC), to support semiconductor production.
This grant, awarded under the CHIPS Incentive Program Commercial Manufacturing Facility Funding Opportunity, is designed to ensure U.S. leadership in advanced semiconductor technology and strengthen our economic and national security .
The funding will support TSMC Arizona’s planned investment of more than $65 billion in three semiconductor manufacturing facilities in Phoenix, Arizona.
The department will release funds when TSMC Arizona achieves certain project milestones.
These facilities will produce logic chips for technologies such as AI applications, high-performance computing, and 5G/6G smartphones.
The TSMC Arizona factory is expected to produce tens of millions of these chips, with initial production yields comparable to those at TSMC’s Taiwan factory.
The TSMC Arizona investment is expected to create approximately 6,000 direct manufacturing jobs and more than 20,000 construction jobs.
In addition to the $6.6 billion in funding, the CHIPS Program Office will also make loan offers of up to $5 billion to TSMC Arizona.
“Today’s final agreement with TSMC, the world’s leading manufacturer of advanced semiconductors, will spur $65 billion in private investment, build three state-of-the-art facilities in Arizona, and provide tens of thousands of jobs,” said U.S. President Joe Biden. This will create jobs.” End of the decade.
“This is the largest foreign direct investment in a greenfield project in U.S. history.
“The first of TSMC’s three facilities is on track to fully open early next year, marking the first time in decades that an American manufacturing facility will be used to manufacture everything from smartphones to smartphones. It means producing cutting-edge chips used in cutting-edge technology, from self-driving cars to data centers powered by artificial intelligence. ”
CHIPS for America has already awarded approximately $6.72 billion and allocated more than $36 billion in proposed funding across 20 states. The initiative also plans to invest billions of dollars in research and innovation, with the potential to create more than 125,000 jobs.
“U.S. Grants $6.6 Billion to TSMC Semiconductor Manufacturing Facility” was originally created and published by Verdict, a brand owned by GlobalData.
The information on this site is published in good faith and for general information purposes only. It is not intended to constitute advice on which you should rely, and we make no representations or warranties of any kind, express or implied, as to its accuracy or completeness. You should obtain professional or specialist advice before taking or refraining from taking any action on the basis of the content on our site.
