TSMC gets $6.6 billion direct funding to boost U.S. chip manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) has received $6.6 billion in funding from the U.S. Department of Commerce to increase chip production.

The Commerce Department and TSMC Arizona have signed a non-binding prelim memorandum of terms (PMT) for up to $6.6 billion in direct funding under the CHIPS and Science Act.

In May 2020, TSMC shared its plans to invest $12 billion in Phoenix Arizona to build an advanced manufacturing fabrication. Two years later, TSMC announced a second fabrication plant in the state with an increased investment of $40 billion.

This new grant of $6.6 billion allowed the company to set up the third plant in Arizona ramping up the investment to more than $65 billion. It is said to be the largest foreign direct investment in Arizona’s history.

Taiwan Semiconductor Manufacturing Company (TSMC) Manufacturing Plant Arizona (Image Credit: TSMC)

TSMC mentioned that its new facility will create around 6,000 jobs and more than 20,000 accumulated construction jobs.

According to the company roadmap, TSMC’s first fab will start with a 4-nanometer process technology for semiconductor manufacturing. Its production will start somewhere in the first half of 2025.

The second plant will start operation of 3 nanometer (3NM) and 2 nanometer (2nm) chipset technologies by 2028. The third facility will become operational by the end of this decade. It will be used to produce a more advanced level of chipset.

The PMT Signed would also give TSMC up to $5 billion in loans. The chipmaker also planned to apply for U.S. Treasury Department Investment Tax Credits of up to 25 percent of qualified capital expenditure at TSMC Arizona.

(source)